In the past few sessions, Lam Research Corporation shares have suffered from a sharp fall and is now coming back to significant level support.

In the recent months, the earnings estimates for the next year are regularly revised upward by analysts.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 61.8 area should stop this trend and allow a technical rebound towards USD 74.75. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

Therefore, the proximity of the USD 61.8 support is an opportunity to go long on Lam Research Corporation. The first goal is a return in the USD 69.56 resistance area, that is a potential of 9.7%. In fact, the security has to cross this area in order to re-establish a bullish trend in the mid term to reach the next resistance at USD 74.75. A stop loss order can be placed under the support currently tested.