Lam Research Corp. (LRCX) started rallying in February of 2016, and in July broke out of a year-long range. The price has continued to rally strongly in 2017, reaching a high of $119.14. The price has started to pullback off that high, closing at $114.90 on Feb. 17. The trendline extending back to early 2016 indicates a potential buying region near $110 to $109. That entry area aligns with minor resistance from November and December, which could now act support. A number of other pullbacks during this rally have been about $9 to $10. If that holds true on this pullback, then the price would be expected to drop into that $110 region before rallying again. Ideally, wait for the price to stall out in the $110 region and then start bouncing again—showing that the price is still respecting that area—before buying. That way a stop loss can be placed below the recent swing low. A more conservative upside target is $121, while a more aggressive target is $125 for this short-term trade.
Read more: Buy These Uptrending Stocks on the Pullback (LRCX, CPRT) | Investopedia http://www.investopedia.com/stock-analysis/cotd/022017/buying-these-uptrending-stocks-pullback-lrcx-cprt-lrcx-cprt-gwr.aspx#ixzz4ZKQh91HB
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