ASML Holdings Consolidate before Next Rally
ASML Holdings' share price shows a lack of upward momentum since July, possibility suggesting a consolidation before the next rally...
Share this:
In July, Dutch semiconductor equipment manufacturer ASML Holdings reported better than expected 2Q net sales that increased 36.3% on year to 3.33 billion euros. However, Investment bank UBS said it struggles to see "compelling upside" to company's share price on a 12-month view and downgraded it to "neutral" from "buy".
From a technical point of view, ASML Holdings is likely to have entered into a consolidation range as shown on the daily chart. It has broken above a bullish cup and handle pattern last week, but remains capped by the 38.2% Fibonacci retracement resistance of the decline started from July. The level at E294.00 might be considered as the nearest support level, while the 1st and 2nd resistances are expected to be located at E335.80 and E355.50 respectively. Alternatively, losing E294.00 may suggest that the next support at E267.00 would be challenged.
Source: TradingView, Gain Capital
In July, Dutch semiconductor equipment manufacturer ASML Holdings reported better than expected 2Q net sales that increased 36.3% on year to 3.33 billion euros. However, Investment bank UBS said it struggles to see "compelling upside" to company's share price on a 12-month view and downgraded it to "neutral" from "buy".
From a technical point of view, ASML Holdings is likely to have entered into a consolidation range as shown on the daily chart. It has broken above a bullish cup and handle pattern last week, but remains capped by the 38.2% Fibonacci retracement resistance of the decline started from July. The level at E294.00 might be considered as the nearest support level, while the 1st and 2nd resistances are expected to be located at E335.80 and E355.50 respectively. Alternatively, losing E294.00 may suggest that the next support at E267.00 would be challenged.
Source: TradingView, Gain Capital
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Nikkei threatens breakout as tech rebound broadens
Breakouts across the SOX and Nasdaq are being matched by rebounds across Asia, with the Nikkei now threatening to join the move.
S&P 500, Nasdaq 100 Forecast for the Week Ahead
A hawkish Fed and 10-Year Notes on the verge of a push above 5%, yet stocks have so far shrugged off that fear. But can it continue?
Hang Seng Tech rout nears make-or-break zone
The technical damage is clear, but with Hang Seng Tech now deeply stretched and approaching major support, the risk-reward is becoming more two-sided.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.