KLA Tencor and Lam Research Up In Sympathy

This morning, the major takeover news comes as Applied Materials Inc.AMAT buys out Varian Semiconductor Equipment Associates Inc.VSEA for $63.00 a share in cash. This buyout is causing some of the other leading semiconductor equipment makers to rally sharply higher this morning. Lam Research Corp.LRCX is a leading semiconductor equipment maker that has been declining since early March 2011, when it traded as high as $59.10 a share. Yesterday, Lam Research stock traded as low as $46.65 a share. This morning LRCX stock is trading higher by $1.90 to $48.85 a share which is nearly a 4.0 percent increase. The stock should have some short term intra-day resistance around the $49.25 area. Should the stock rally above this level the next important intra-day resistance level will be at $50.00. KLA Tencor Corp.KLAC is another leading semiconductor equipment maker. This stock is trading higher this morning $1.09 to $44.05 a share. The stock has been making a series of lower highs on the daily chart which is not a sign of strength on the charts. Traders can look for intra-day resistance around the $44.50 and $45.00 levels. Lam Research Corp. and KLA Tencor Corp. are two of the larger semiconductor equipment makers. It is difficult to know who would takeover these big market cap companies. Therefore, this bounce in these two stocks could be short lived. That is the reason that we want to follow the charts and not solely rely on the news. Nicholas Santiago InTheMoneyStocks.com