Lam Research Rises 12.64% in Seven-Day Rally as Technicals Signal Bullish Momentum

Lam Research (LRCX) closed at $91.00 on June 10, 2025, marking a 3.06% single-day gain and completing a seven-day rally that yielded a cumulative 12.64% advance. This momentum forms the backdrop for our technical assessment.
Candlestick Theory
The current rally exhibits a sustained sequence of green candles with progressive higher highs and higher lows, signaling robust bullish momentum. Key resistance is established at $91.37 (June 10 high), while immediate support rests at $88.34 (June 10 low). A secondary support zone near $85 emerged during consolidation in early June, reinforced by the May 30 reaction low at $79.49. Volume expansion during this uptrend validates buyer conviction, though proximity to the $91.37 resistance may trigger near-term profit-taking.
Moving Average Theory
All key moving averages display bullish alignment: the 50-day MA ($82.50) > 100-day MA ($78.10) > 200-day MA ($75.80). Recent price action consistently holds above the 50-day MA, confirming short-term strength. The 50-day MA's impending golden cross above the 200-day MA would signal a potential long-term trend reversal, further supported by the expanding separation between shorter and longer-term averages.
MACD & KDJ Indicators
The MACD (0.75) maintains a bullish crossover above its signal line with histogram bars expanding, confirming momentum. KDJ readings (K: 85, D: 82, J: 91) indicate overbought territory, though the sustained J-line ascent reflects strong directional momentum. While MACD-KDJ confluence supports continuation, divergences would emerge should price consolidate while KDJ retreats from current extremes.
Bollinger Bands
Price trades near the upper band ($90.20), reflecting elevated volatility and bullish pressure. Band width expansion since June 3 correlates with the breakout rally. Historical squeezes preceded major moves - notably the May 12 surge (9.14%) followed a contraction period. Current width expansion reduces reversal probability near-term, favoring momentum extension toward the $92-93 upper band projection.
Volume-Price Relationship
Uptrend validation is evident: the June 9 surge (+2.26%) occurred on 14.5M shares - the highest volume in 30 days. Subsequent follow-through days showed above-average volume, confirming accumulation. The 30-day volume MA (10.8M) has trended upward since May, though recent volumes (June 6-10) decelerated slightly while prices rose - a minor divergence warranting monitoring for exhaustion signals.
Relative Strength Index (RSI)
The 14-day RSI (76) indicates overbought conditions, exceeding the 70 threshold. While this historically preceded minor pullbacks (e.g., late February), current readings align with strong momentum phases where overbought conditions persist. We note RSI peaked at 82 during early May's rally without immediate reversal, suggesting continued upside potential exists before mean-reversion pressure intensifies.
Fibonacci Retracement
Using the March 14 low ($75.26) and June 10 high ($91.37) as anchor points, key retracement levels are $87.20 (23.6%), $85.30 (38.2%), and $83.30 (50%). The recent consolidation at $85 established the 38.2% level as robust support. Should a pullback materialize, the 23.6% level ($87.20) aligns with the June 4 swing high, providing probable technical support. Extension targets reside near $94 (127.2%) and $98 (161.8%).
Confluence & Divergence Assessment
Confluence is observed at $91.00-$91.50, where Bollinger Band resistance coincides with psychological resistance and the current consolidation high. Should a breakout occur, Fibonacci targets offer upside objectives. The primary divergence exists between KDJ overbought readings and sustained price strength, though MACD and volume patterns mitigate reversal concerns. Should RSI remain elevated while volume contracts further, this would strengthen caution signals. Near-term trajectory favors continued upside within a bullish regime, though technical indicators suggest consolidation or pullback probabilities may increase above $91.50.