easy play on ASMLI’ve been closely monitoring the monthly chart of ASML Holding (Euronext) and have identified a compelling setup that aligns with my long-term strategy. Previously, I shared an idea on TradingView with an ambitious $1200 price target, based on the stock’s strong long-term uptrend and solid fundamentals. However, upon further analysis, I’ve identified an internal trendline, which provides additional clarity and reinforces my bullish outlook. Interestingly, a similar internal trendline has been observed in other stocks like Super Micro Computer, further validating this structure.
Technical Analysis:
Primary Uptrend:
ASML is in a well-established long-term uptrend, confirmed by the primary ascending trendline connecting historical lows since 2012. This line showcases the structural strength of the stock and consistent investor confidence.
Internal Trendline Confirmation:
The recently identified internal trendline connects intermediate lows formed during price retracements, indicating a temporary slowdown in growth while maintaining an overall bullish structure.
This internal trendline has previously acted as dynamic support, suggesting it may serve as a critical reference point for future price action.
Key Price Levels:
The current price (631.5 EUR) sits near a confluence zone between horizontal support and the internal trendline. This presents a strong entry point for a long position with an attractive risk/reward ratio.
Significant support has been identified around the 600 EUR level, reinforcing my confidence in a potential price rebound.
Long-Term Price Target:
My long-term price target remains at $1200, which I believe is achievable as the stock continues to respect its bullish trend. This target aligns with ASML’s historical growth trajectory and the robust potential of the tech sector.
Entry Timing:
The recent bounce off the internal trendline and the +1.66% daily gain signal positive accumulation and increased buying interest. I plan to go long now, taking advantage of the dynamic support, with a stop loss set just below 590 EUR to manage risk effectively.
ASML Holding offers a compelling investment opportunity, supported by a solid technical structure and clear bullish potential. The internal trendline, combined with horizontal support and the broader long-term uptrend, strengthens my confidence in entering a long position. With a $1200 target and a well-defined risk management plan, I believe this is the right time to position for the next leg up in this stock.
