Lam Research Corporation : A rally could take place
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$63.39 | US$0 | US$60.7 | -100% |
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.