LRCX (Lam Research) - RSI2 Connors Strategy Setup

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🚀 Trade Idea: LRCX (Lam Research) - RSI2 Connors Strategy Setup

Entry: $98.59
Stop Loss (SL): $89.34 (~9.4% risk)
Take Profit (TP): $117.29 (~19% upside)
Risk-Reward Ratio: 1:2

📈 Trade Rationale
RSI2 Connors Buy Signal Triggered

LRCX hit an RSI2 ≤ 10 (oversold) on July 31, generating a high-probability buy signal per Connors' mean-reversion strategy.

Historically, stocks bouncing from extreme RSI2 lows tend to see short-term rallies.

Key Support & Resistance Levels

Support: Strong demand zone near $95–$98 (previous swing low).

Resistance: Next target at $117.29 (prior swing high + Fibonacci extension).

Stop Loss Placement

Placed below the recent swing low ($89.34) to avoid premature exits while respecting volatility.

📉 Risk Management
Position Size: Risk ≤ 1–2% of capital per trade.

Exit Plan:

Partial TP at RSI2 > 60 (scaling out 50%).

Trailing Stop if price trends beyond $110.

🔍 Why This Works
Mean-Reversion Play: LRCX is oversold in the short term with room for a bounce.

Semiconductor Sector Strength: If broader tech rallies, LRCX could outperform.

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Disclaimer: This is not financial advice. Always do your own analysis. 🚨

Disclaimer

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