Lam Research (LRCX) delivered strongly in their Q4 earnings report, but the stock has since tumbled almost 10%. The market for semiconductors is not going anywhere... Target: give it to your grandchildren, or at least until processors using silicon fall out of favor. SOXX and SOXL are also good ways to get some exposure to LRCX and the semiconductor market.
Trend Analysis: -->Looks to be breaking resistance at $215. Strong earnings will likely allow the price to break through. -->Hit support early today around $208 Indicators & Overlays: -->MACD looking to cross over close to 0 -->DMI+ looking to cross over DMI- in an upward trend -->RSI showing resistance at 40 and moving upward back to the 80 range
Growing revenue, margins, free cash flow, and trading at a low-ish historical PE still makes Lam Research a good Value pick. Timing: picking up more with this double bottom found after the slide. Downside: The semiconductor cycle and potential downturn in 2018. But IoT demand should have a greater benefit to prevent it though.
-mid time frame is in downtrend with price action consolidating and wykcoff spring failure test above the 147.7x area with rsi positive divergence -lower time frame is showing a range bound tight action with positive volume pressure ready to test 149.x -higher time is in uptrend- pulling back and in area of support