Stock Of The Day: Where Will The Lam Research Selloff End?

Core Viewpoint - Lam Research Corporation's stock experienced a significant selloff of nearly 6% on Tuesday, but showed signs of recovery on Wednesday, making it the "Stock of the Day" [1]. Group 1: Stock Performance - The stock opened at $149.90, reached a high of $153.70, but closed lower at $149.15, indicating that sellers dominated the market [7]. - The price action on Monday formed an "inverted hammer" pattern, suggesting a shift in control from buyers to sellers [5][7]. Group 2: Technical Analysis Insights - Technical analysis focuses on the study of supply and demand in the market, which can indicate whether a stock is in an uptrend or downtrend [2]. - A downtrend occurs when there is insufficient demand to absorb the supply, leading sellers to lower prices to attract buyers [2]. - Conversely, an uptrend is characterized by high demand and insufficient supply, causing buyers to outbid each other [2]. - Changes in market leadership from bulls to bears or vice versa can create reversal patterns on charts, which technical analysts monitor [4].