Some trends whisper. Others roar. And right now, one breakout in the semiconductor and chip equipment space is making serious noise. While the broader market has been volatile and uneven, this stock has been steadily climbing the ranks—marking up with precision, pushing through resistance levels, and building real momentum beneath the surface. It’s not just drifting higher—it’s charging ahead with purpose. Price action like this isn’t random—it’s driven by conviction. And when a move this clean lines up with volume and structure, it’s a signal that can’t be ignored.

That explosive setup? It’s unfolding in shares of KLA Corp., symbol: (KLAC)—a quiet powerhouse in the semiconductor equipment space that’s suddenly not so quiet anymore. The stock has been ripping higher in recent weeks, fueled by a potent mix of AI-driven chip demand and bullish earnings momentum across the sector. Institutions are leaning in, price action is impressive, and KLAC keeps notching new highs while leaving the broader tech index in the dust. This isn’t a flash-in-the-pan rally—it’s a full-fledged shift in how the market is valuing one of the key enablers of next-gen chip production.

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This isn’t just a breakout, it’s a breakout with muscle behind it. The price action is clean and deliberate, carving out a clear sequence of higher highs and higher lows while pushing into new 52-week high territory. But what really makes this move stand out is the volume footprint. Over the past six weeks, the On Balance Volume (OBV) line has been steadily climbing, confirming that buyers aren’t just active—they’re persistent. That rising OBV tells us the demand is real and sustained, adding serious credibility to the breakout. When momentum is backed by steady accumulation like this, it often sets the stage for an extended run higher.

With momentum accelerating and OBV confirming steady buying pressure, KLAC looks well-positioned for further upside—and this breakout may just be getting started. That said, after such a strong six-week run, I want a smart layer of protection in place. That’s why I’m targeting this setup with a call debit spread, which limits risk while still offering serious upside. In fact, this specific spread has the potential to deliver a 56.9% return—if the stock jumps, simply stays flat, or pulls back slightly by as much as 7.5%. It’s a smart, strategic way to play a powerful trend. And if you found this setup and analysis valuable, don’t miss what’s next: click the image below to grab your free copy of Chuck’s e-book, ‘The Untold Secret’. Inside, he breaks down some of his most effective trading strategies—the same kinds of setups that power trades like this one. Go grab it now and put these tools to work for you.

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

Have any questions? Email us at dailytrade@chuckstod.com

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