LRCX closes within previous day's range after lackluster session

Lam Research Corporation (LRCX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team


LRCX breaks below key technical support level
LRCX runs into sellers again around 314.37
LRCX stuck within tight trading range
LRCX closes within previous day's range after lackluster session


LRCX ended Wednesday at 306.60 losing $2.33 (-0.75%) on low volume, but still outperforming the Nasdaq 100 (-1.67%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (LRCX as at Sep 16, 2020):

Daily technical analysis candlestick chart for Lam Research Corporation (LRCX) as at Sep 16, 2020

Wednesday's trading range has been $8.51 (2.73%), that's below the last trading month's daily average range of $11.46. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LRCX. Prices continued to consolidate within a tight trading range between 299.63 and 314.37 where it has been caught now for the last three trading days.

One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, LRCX actually gained 3.89% on the following trading day.

Prices broke below the key technical support level at 307.06 (now R1), which is likely to act as resistance going forward. After having been unable to move above 312.82 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 314.37.

Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lam Research. Out of 553 times, LRCX closed higher 56.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.05% with an average market move of 1.02%.

Market Conditions for LRCX as at Sep 16, 2020

Loading Market Conditions for LRCX (Lam Research Corporation)...
Latest Report:

LRCX pushes through Friday's high

Sep 21, 2020
Trending Assets

Upgrade your trading!

Get the stats behind the charts

Find out what happened when Lam Research Corporation traded like this in the past. See the odds for each technical pattern with expected gain and loss.

Find out more
Top Movers
You have free reports remaining. Subscribe for unlimited access...SUBSCRIBELOGINGO!