• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Daily Swing Trade Archive
    • Income Seeker
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

ASML Holding Is Poised for an Upside Move as Downside Momentum Has Slowed

I think the rally can come sooner than later.
By BRUCE KAMICH
Dec 06, 2018 | 02:25 PM EST
Stocks quotes in this article: ASML

ASML Holding N.V. (ASML) declined from a July zenith but it has seen its pullback slow as a rebound rally could be soon at hand. Let's explore some charts and indicators to see if this anticipated rally is worth participating.

In this daily bar chart of ASML, below, we can see the decline from above $220 to the $160 area. Since October dips into the $165-$155 area look like they have been bought. Volume looks heavier in October and November and that can suggest some change of ownership from weak hands to stronger hands. ASML tested the declining 50-day moving average the other day and was turned back down. The 200-day average line shows a peak in October and a negative slope since then. The daily On-Balance-Volume (OBV) line has declined from late July but could be bottoming now. In the lower panel is the 12-day price momentum study which shows higher lows from September to October to November - this is a bullish divergence when compared to the price action. Slowing momentum can foreshadow a rally in the days and weeks ahead.

In this weekly bar chart of ASML, below, we can see a strong rise for this stock over the past three years. Prices are below the declining 40-week moving average line but notice the mostly flat weekly OBV line - it has diverged at the highs but it also has not weakened much during the downswing. The weekly MACD oscillator is narrowing now towards a possible bullish crossover.

In this Point and Figure chart of ASML, below, we can see a downside price target of $149 but we can also see that a trade at $178.74 will be a triple top breakout. Take your pick.

 

Bottom line strategy: investors and traders will be sitting on the edge of their chairs until the November highs can be cleared. With sentiment so bearish, in my opinion, I think the rally can come sooner than later. Aggressive traders could trade the long side on strength above $179.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | Stocks | Technical Analysis | Trading

More from Investing

Nvidia Is Taking Fresh Steps to Boost its Sales to Gamers - Tech Check

Eric Jhonsa
Feb 22, 2019 8:51 PM EST

The GPU giant just launched a new mid-range product that has done well in reviews. And it might be prepping a new high-end offering.

The Game Remains the Same in This Stock Market: Keep Playing It

James "Rev Shark" DePorre
Feb 22, 2019 4:49 PM EST

The Nasdaq is now up nine weeks in a row, but what was most notable this week was the excellent stock-picking.

Chart of the Day: Kraft Heinz Credit Outlook Is Troubling

Kevin Curran
Feb 22, 2019 3:50 PM EST

KHC has a big problem on its balance sheet.

Infinera Looks to Have Formed a 'Bullish Reversal Pattern'

Guy Ortmann
Feb 22, 2019 3:10 PM EST

The price of INFN is spiking again today in response to positive quarterly earnings from the communications equipment maker.

Bullish Charts and a Quant 'Buy' Recommendation on Newmont Mining

Bruce Kamich
Feb 22, 2019 2:50 PM EST

Imagine how strong the charts might look if the U.S. dollar turned lower.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:42 PM EST KEVIN CURRAN

    Kraft Heinz Hits Numerous ETFs

    Even for those avoiding Kraft Heinz stock, contr...
  • 11:11 AM EST KEVIN CURRAN

    KHC Crashes Through Technical Floor, Options Action Accelerates

    The RSI on Kraft Heinz is reflecting a shockingl...
  • 11:48 AM EST BOB LANG

    Making a Case for Microsoft and Snap

    Mr Softy has long been a laggard and late to the p...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login