Lam Research Stock Jumps 4.4% to $95.64 as Technicals Signal Bullish Momentum

Lam Research (LRCX) shares rose 4.40% to $95.64 in the latest session, marking a two-day cumulative gain of 5.69%. This upward momentum provides context for the technical assessment below, where multiple indicators suggest bullish potential with short-term caution due to overextended conditions. The analysis follows the required framework while referencing the complete dataset.
Candlestick Theory
Recent sessions reveal a bullish engulfing pattern formed by the June 23rd–24th candles, where the second day’s body completely overshadowed the prior day’s decline. Key resistance sits at $95.77 (June 24th high), aligned with the June 17th swing high of $95.015. Support emerges near $90.49 (June 20th close), reinforced by the cluster of wicks around $87.75 that halted further selling. The decisive close above $95 invalidates the bearish momentum from the June 20th long red candle, signaling buyer conviction.
Moving Average Theory
The 50-day MA has recently crossed above both the 100-day and 200-day MAs, confirming a bullish trend reversal. Price currently trades above all three moving averages ($50-day ≈ $83.50, $100-day ≈ $78.20, $200-day ≈ $76.80), with the 50-day acting as dynamic support. The golden cross formation between the 50-day and 200-day MA reflects strengthening intermediate momentum, though the distance between price and the 50-day MA (~12% gap) suggests potential mean-reversion pressure.
MACD & KDJ Indicators
MACD shows a bullish crossover above its signal line, with the histogram expanding positively for five consecutive sessions—confirming accelerating upside momentum. However, the KDJ’s %K (92) and %D (88) lines have entered overbought territory, diverging slightly as %K’s slope moderates despite higher prices. While MACD supports continuation, KDJ’s overbought stance and potential bearish divergence near $95 resistance advise caution against immediate entries.
Bollinger Bands
Bands contracted sharply during the June 18th–23rd consolidation before expanding with the breakout above $93. Price now rides the upper band ($95.50), typically signaling overbought conditions when coupled with bandwidth expansion. The squeeze-resolution pattern suggests follow-through upside toward $97-$98 is possible, but closes outside the upper band historically precede short-term pullbacks to the midline (currently $89.25).
Volume-Price Relationship
The rally’s legitimacy is confirmed by rising volume on up days (June 23rd volume: 12.54M shares vs. 20-day avg. 10.8M), culminating in the June 24th advance on 7.26M shares. Notably, the June 20th sell-off saw massive volume (22.16M), indicating capitulation before the reversal. Volume divergence is absent during the ascent, supporting sustainability. The Ease of Movement indicator remains positive, reflecting low resistance to upward moves.
Relative Strength Index (RSI)
The 14-day RSI reads 74, above the overbought threshold of 70. This calculation incorporates the 5.69% two-day surge, with average gains significantly outweighing losses over the period. While overbought, RSI has not yet peaked at extremes seen during prior rallies (e.g., April 9th: RSI 82), and its upward slope aligns with the trend. Contextually, RSI above 70 in a confirmed uptrend signals strength, though it raises near-term exhaustion risks.
Fibonacci Retracement
Using the April 9th low of $60.25 and the June 24th high of $95.77 as anchor points, key retracement levels emerge at $82.48 (23.6%), $77.96 (38.2%), and $74.69 (50%). Price has consolidated above the 38.2% level ($77.96) since mid-June, converting it to support. The 61.8% retracement at $71.40 aligns with the May 30th swing low, creating a confluence zone. Current strength targets the 78.6% extension at $97.80, a viable resistance target.
Confluence and Divergences
Confluence exists at $95–$96, where Bollinger Band resistance overlaps with the Fibonacci 138.2% extension level and the psychological $100 threshold proximity. Bullish alignment is evident via MACD/volume confirmation and moving average support. However, KDJ and RSI diverge by signaling overbought conditions while MACD maintains momentum—a discrepancy that typically resolves through consolidation rather than reversal. The absence of bearish volume or candlestick reversal patterns at resistance supports eventual breakout probability after digestion.
Probabilistic Outlook
Lam Research exhibits robust bullish momentum underpinned by moving average alignment, volume confirmation, and Fibonacci positioning. The $95–$96 resistance may trigger short-term consolidation to relieve overbought oscillators, with dips toward $91.50–$92.50 offering accumulation opportunities. A sustained close above $96 opens a measured move toward $98–$100, while failure to hold $90 invalidates the near-term structure. Given indicator confluence, the bias favors upside continuation post-consolidation.