Score 8.2 (out of 10): LAM RESEARCH CORP sets up for +12.1%% rally in 2 months

71

What’s Going On Here?

The Chips and Science Act is to provide grants and subsidies worth $280 billion to the US technology and semiconductor industry. The bill will allocate $52 billion to amp up the domestic chip making industry, so that the United States is not reliant on Asia for semiconductor chips and related devices.

Why Now?

LAM RESEARCH CORP has reached a new medium term high. Previously, during similar occasions, LAM RESEARCH CORP shares had a median return of +12.1%, over the following 2 months – based on 10 historical occasions with 9 of those showing positive returns (90% hit ratio). This buy signal for LAM RESEARCH CORP received a high score of 8.2 (out of 10). This insight was generated on 2022-August-4 with last price of 531.85.

What’s This Company About?

LAM RESEARCH CORP is in the Semiconductor Equipment business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: LRCX US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 596.21 (+12.1%) has been reached. Based on LAM RESEARCH CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 502.85 (last price at 531.85), which is equivalent to a -5.5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

10.6% (November-2021), 2.5% (April-2021), 32.2% (November-2020), 34.2% (June-2020), 20.6% (October-2019), 15% (July-2019), 7.1% (March-2019), 13.6% (November-2018), -10.4% (March- 2018), 6.8% (July-2017).

Historical Chart:

Summary:

NameLAM RESEARCH CORP
ViewUp
Star (1 to 10)8.2
Target12.1%
Time2 months
Hit Rate90%

———————————————————————a

Leave a Reply