Bought Lam Research Corporation during the morning session because the price broke through overhead resistance levels. The move matched Strategy 1 — a breakout following a period of sideways consolidation. However, it unexpectedly reversed later and failed to close above overhead resistence. I’ve set the stop loss at today’s low and will see how it plays out tomorrow.
Positives
- Price is above the 10, 20, 50, and 200 moving averages
Negatives
- The price ultimately failed to break above the resistance level, and the increase in volume suggests there is selling pressure overhead.
- MACD is in negative territory
Trade Plan
- Stop loss: Intraday low
- Target: $310.08
