Lam Research (LRCX) Plunges 5.67% in Two Days as Technical Indicators Signal Deepening Downtrend Toward $142.65 Support

Lam Research (LRCX) has experienced a sharp two-day decline of 5.67%, closing at $154.98 on 2025-12-17, with a 5.07% drop in the most recent session. This bearish momentum is evident in the candlestick patterns, where long lower shadows and bearish bodies suggest strong selling pressure. Key support levels are forming around $154.98, while resistance is likely at $164.30 (a prior high). A break below $154.98 may trigger further declines toward $153.60, with potential for a test of the $142.65 level identified via Fibonacci retracement.

Moving Average Theory reveals a bearish bias, with the 50-day MA (calculated as approximately $160.50) falling below the 200-day MA ($153.00), indicating a downtrend.

The 100-day MA ($157.00) adds confluence, as the current price is trading below all three, reinforcing the short-term bearish bias. However, a retest of the 50-day MA could spark a countertrend rally if buyers emerge.
MACD and KDJ Indicators suggest overbought conditions are not a concern, but bearish momentum persists. The MACD histogram has contracted, signaling weakening downward momentum, while the KDJ indicator shows %K ($145.00) and %D ($147.00) in oversold territory. A stochastic crossover above the 20 level may hint at a short-term bounce, though divergence between price and KDJ momentum could delay a reversal.
Bollinger Bands highlight volatility, with the price near the lower band ($153.60). Band contraction observed in late November ($142.65–$153.32) has since expanded, suggesting a potential continuation of the downtrend. If the price closes above the middle band ($158.00), it may signal a short-term rebound, but a sustained break below the lower band would heighten bearish expectations.
Volume-Price Relationship validates the recent decline, as trading volume spiked to $1.92 billion on 2025-12-17, the highest in three months. Elevated volume during the selloff suggests conviction among sellers. However, declining volume in subsequent sessions may indicate exhaustion, though confirmation of a bottom is pending.
RSI has fallen to 25, confirming oversold conditions. While this often precedes a rebound, the RSI has remained in oversold territory during the 2025-09–2025-12 decline, suggesting the downtrend may persist. A divergence (e.g., RSI making higher lows while price makes lower lows) would strengthen the case for a reversal.
Fibonacci Retracement levels at $153.60 (61.8%), $148.26 (50%), and $142.65 (38.2%) provide critical support zones. A close above $158.00 (the 78.6% retracement) would target $163.26 (a prior high), but a breakdown below $148.26 could accelerate the decline toward $135.50 (23.6%).
Confluence between Bollinger Bands, Fibonacci, and RSI suggests $153.60 is a pivotal level. A rejection here may spark a short-term rally, but bearish momentum from moving averages and volume implies a higher probability of continuation. Divergences between KDJ and MACD signal conflicting signals—MACD hints at bearish exhaustion, while KDJ suggests oversold conditions. Traders should prioritize price action at key support/resistance levels and monitor for a potential short-covering rally.