1 Tech Stock That Looks Ready To Rally⏤If The Market Can Pick Back Up

Today our stock in focus is Lam Research Corp. (LRCX), which looks like it wants to move higher. If we could get a slight pullback to the 650, then this could set us up for the best risk/reward on the trade. The market has a somewhat sluggish start to the morning, however, SPY was able to climb higher in the early hours of the session.

If this momentum can carry through then it might be another good opportunity to enter this trade. Traders should be weary of the possibility of a pullback, but seeing as how all news is positive news at this point and the trend remains up, shorting would be better substituted with just sitting out on any new trades.

In the case of LRCX, trader would be better off waiting for a pullback in the price in order to position themselves for another run at 661. The best thing you can do as a trader is be patient. The worst that can happen if you wait to long and miss a move is that you missed a move and lost no money in the process.

The flip side of that is you don’t want to miss moves, that’s where risk/reward comes in. If you wait until your risk/reward makes the trade make sense, then you enter somewhat robotically, while keeping your risk management firmly in mind. If your stop is hit on a trade you waited patiently for, you simply move on to the next.

Make sure to watch the full video below in order to get all the levels we are watching on LRCX and give yourself the best chance at scoring a winning trade.

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