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Lam Research (LRCX) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Lam Research (LRCX - Free Report) could be a good stock pick from a technical perspective. LRCX surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
LRCX has rallied 5.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests LRCX could be on the verge of another move higher.
Once investors consider LRCX's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on LRCX for more gains in the near future.