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...

Trader 1

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

Build your confidence risk free

More from Tech Stocks

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.