After reaching an important support level, Lam Research (LRCX) 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 a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of LRCX have been moving higher over the past four weeks, up 26.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that LRCX could be poised for a continued surge.
The bullish case only gets stronger once investors take into account LRCX's positive earnings estimate revisions. There have been 10 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting LRCX on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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This article originally published on Zacks Investment Research (zacks.com).
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