Lam Research (LRCX) is maintaining a bullish trend despite a corrective wave IV, according to Elliott Wave analysis. The long-term chart identifies a strong impulsive structure beginning in the early 2000s, indicating further upside potential as wave V nears.

Wave III concluded with a distinct five-wave pattern from the 2009 low, demonstrating strong momentum. Currently, the stock is experiencing a wave IV correction, characterised by a double zigzag pattern denoted as ((W))-((X))-((Y)). Support is at $0.6604, and the bullish outlook remains valid above this level.

The correction presents an opportunity for entry at more favourable prices, rather than suggesting exit. Once wave IV concludes, wave V is anticipated to initiate, potentially achieving new all-time highs, though the timeline remains uncertain.

In the wider market, the EUR/USD holds above 1.1250 but is set to record small weekly losses. GBP/USD is recovering towards 1.3300 amid a stalled USD and US-China trade talks. Gold maintains gains above $3,300, buoyed by geopolitical tensions. Upcoming events include the US CPI report and ongoing trade discussions, with broader market focus on trade negotiations and economic data releases.

What we’re seeing in Lam Research’s structure is a textbook application of Elliott Wave Theory, and it’s unfolding in a manner that aligns with longer-term projections. The prior wave III showed strong extension, and it did so with high clarity—five clear legs from the 2009 low suggest momentum carried by more than just sentiment. That momentum, historically, has not dissipated overnight. Now that the share price has entered a wave IV correction, we expect short-term softness to continue—but that’s structurally needed before a trend can resume.

This wave IV isn’t a deep collapse. Its double zigzag shape ((W))-((X))-((Y)) tells us that the decline is more likely to be a temporary rebalancing rather than a structural top. That support at $0.6604 essentially outlines the boundary—if we stay above that, the bullish model stands. It’s important to monitor how price behaves around that level; a clean bounce or a sideways veer would provide added confirmation. The alternative—breaking sharply below—would compel a reassessment of wave labelling, though that seems limited at present.

Traders focused on derivatives built around Lam’s movement may find more use in timing this correction with long entries instead of avoiding it. Corrections in wave IVs tend to unnerve short-term participants, but that mispricing often provides the edge. If the current shape unfolds fully within expectations, then wave V could begin with considerable energy—wave Vs often mirror or exceed prior wave I extensions when momentum returns.

Elsewhere, the foreign exchange tape has been erratic, though not without form. The euro-dollar holding above 1.1250 underlines strength on dips; however, weekly softness indicates hesitancy ahead of U.S. prints. Sterling is edging back to 1.3300—not on its own strength, though—but on a drifting US dollar, partly influenced by renewed ambiguity over U.S.-China trade developments.

On the metals front, gold above $3,300 gives us a reading of risk sensitivity in the system. A price holding that level during tense geopolitical cycles isn’t unusual; it reinforces gold’s use as a secondary hedge. Notably, it means that the current buyers are not short-term chasers. They’re position-holders awaiting either inflation surprises or unexpected volatility from global data.

In the context of macro signals and order flows, next week’s U.S. CPI release needs to be tracked closely. The expected figure will anchor rate expectations more firmly ahead of the next policy window. Trade developments, especially in response to ongoing tariffs and negotiation frameworks, will also feed directional cues across asset classes.

These are not environments for directionless plays. Implied volatility metrics in rates, FX, and equities remain elevated. That suggests hedging activity is far from neutral, and it means they’ll respond swiftly to data disappointment or surprise.

We’ll need to keep pattern integrity in mind while watching for early signs that wave V in Lam may be preparing to ignite. That would come through strong impulsive moves off support, preferably with volume confirmation. Until then, measured entries on weakness offer favourable reward-risk profiles—not passive holdings.