ASML Holding: ASML Stock Price Displays Death Cross Pattern

• The ASML Holding will announce its Q3-2023 report on October 18, 2023.
• The ASML stock price displays the death cross pattern. 
• ASML stock closed at $599.75, with a gain of 2.76% in the past intraday session.

ASML Holding NV is a Netherlands-based company that is the largest supplier for the semiconductor industry in 2023. It is the sole supplier of extreme ultraviolet lithography (EUV) photolithography machines which are used to manufacture sub-7nm semiconductors. 

ASML Holding is a crucial supplier of TSMC (Taiwan Semiconductor Company Limited). TSMC produces over 60% of the world’s computer chips. Furthermore, it produces over 90% of the world’s leading-edge semiconductors for companies like Nvidia, Apple, AMD, and Qualcomm.

ASML Stock Price Displays Death Cross 

The ASML stock price displayed a death cross pattern on 25 September 2023. The short-term 50-day EMA crossed below the long-term 200-day EMA, due to the heavy dominance of bears. This indicates that the price may probably undergo further declines. However, after the death cross occurred, the price observed a retracement and bounced towards the $600 mark.

The death cross which occurred in the past month showcased a downtrend. The price dropped about 27% after achieving an annual high of $771.98 on July 14, 2023. While following the downtrend, the price melted towards the $564 support level. 

However, due to the vigorous presence of bulls at the $564 level, the price bounced, and is currently showing resistance to the downtrend trendline. This encouraged the buyers and ASML stock surged about 10% after forming strong support near the $570 level. 

Recently, ASML stock closed at $599.75 while witnessing a gain of 2.76% during the previous intraday session. If the bullish sentiment sustains and the price surge moves above the previous candle high of $624.19, then it might hike toward the $670 resistance level.

On the other hand, if the bears take control and the price melts below the current candle low of 597.34, then there is a high possibility that it might retest the recent support level of $564. The current market capitalization of ASML Holding is $248.07 Billion with an average trading volume of 1.06 Million. 

Q3-2023 Financial Report Estimates

ASML Holding is scheduled to announce its third-quarter financial report on October 18, 2023. Market participants are patiently waiting for this announcement. The company outclassed the Zacks Consensus Estimate in all the previous four quarters, delivering an earnings surprise of roughly 19%, on average. 

For the Q3 financial report, ASML Holding expects revenues between $5.27 Billion and $5.68 Billion. However, the Zacks Consensus Estimates for the 3rd quarter EPS (earnings per share) is projected at $4.67, which reflects a growth of 57.8% compared to the reported figures from the same quarter of the previous year. 

Conclusion 

ASML Hodling’s market structure and price action showcase a recovery from the prior downtrend. The relative strength index (RSI) is hovering near the 50-neutral zone, indicating that the price has shifted from the bears’ dominance toward a bullish trend. Meanwhile, the EMAs are suggesting prolonged weakness in the market. Moreover, the death cross pattern signals a good opportunity to invest in ASML stock. 

Technical Levels

Major resistance: $747.13 and $771.98

Major support: $564.28 and $536.77

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.