Recently, my friends over at Wall Street Warrior brought an interesting trade to my attention. The company is Lam Research Corporation (LRCX), founded in 1980. Lam is a major supplier of wafer fabrication equipment and services to the world's semiconductor industry. This industry has not seen a tremendous amount of institutional cash flow recently. Couple that with a bearish market and a double whammy technical setup and you could find yourself in the middle of a good shorting opportunity.

The two bearish technical patterns here include a head-and-shoulders and bearish flag. The recent breach of the critical 200Day SMA support confirms the bearish reversal taking place here. A recent pullback on very weak and declining volume sets up a low risk entry point for a short trade here.