Lam Research Corp : The stock is forming a Head and Shoulder Pattern which is one of the strongest Reversal Patterns we have seen.

Before I comment I would like to describe a bit of head and shoulder patterns insights.
1. Middle should be taller than the left and right shoulder.
2. It has been observed that if Left shoulder is greater than the right shoulder at the top, returns are good.

3. Only enter when the Neck Line is violated.
4. Volume is not a concern in the formation.

As we have seen the formation we would wait for the stock to close below the neckline for the Head And Shoulder to be completed, We might see another right shoulder formation and we call it complex Head And Shoulder.
Will start taking a selling position once the closing is below the neckline till the time will have a close look at the stock.

Advice : Wait for the stock to close below the neckline, If the stock closes above 658 we won't see a Head and Shoulder Formation Complete.

Selling Opportunity

Jul 12 2021

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