Company Description: KLA-Tencor Corporation provides process control and yield management solutions for the semiconductor manufacturing and related microelectronics industries. It offers equipment comprising patterned and unpatterned wafer inspection, defect review, and classification; reticle defect inspection; packaging and interconnect inspection; critical dimension metrology; pattern overlay metrology; film thickness, surface topography, and composition measurement; measurement of in-chamber process conditions, wafer shape, and stress metrology; computational lithography tools; and yield and fab-wide data management and analysis solutions. The company also provides products that serve the LED, data storage, solar, and other industries; and semiconductor mask and wafer inspection and metrology systems. KLA-Tencor offers its products in the United States, Europe, Israel, Japan, Taiwan, Korea, and the Asia Pacific. The company was founded in 1975 and is headquartered in Milpitas, California..

Our Analysis: The shares of KLA-Tencor Corp. 'KLAC' set a new 2009 closing high on heavier than normal trading volume. In the process they completed a "cup pattern" with a measured move to our price target of $34.96/share. Additionally the Philadelphia Semiconductor Index 'SOX' set a new 2009 closing high as well. A comparison of the chart of the two (2) indicates a high correlation between them. This all is a very bullish trading signal. As a result I am expecting the shares of 'KLAC' to continue to move higher and test our stated price targets. I see downside support on the shares of 'KLAC' @ $32.29/share, and have set my stops accordingly at $31.87/share.