Has $ASML found a bottom? – October 17, 2024
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at a chart that we’ve been watching very closely over at Stock Market Mentor, and that is ASML ( NASDAQ: ASML ). It’s the company that makes the machines that make the microchips that make the world go round. That’s really what they are.
They had earnings, they accidentally released their earnings early and they put forward some bad guidance. The Market didn’t like that and the stock got punished. What we’ve been looking for at Stock Market Mentor is a floor. We may have found a floor here on ASML ( NASDAQ: ASML ) today.
Now, what gives me an indication that maybe the bottom is in, at least for now, is the fact that we have a green day on the chart. Anytime you see a big sell-off you don’t want to just catch that falling knife you want to wait to see when the buyers step back in. We did see some buyers step into ASML ( NASDAQ: ASML ) today.
We see support on this chart right around 677.00, just there. And if I flip to a weekly chart we can see, that’s a pretty important level because it lines up with the 200-week moving average. So that’s a pretty long-term moving average, which if I zoom out, the stock has found support at, for the past couple of years.
Yes, it does dip under that 200-week moving average, but eventually, the buyers come and bring it right back up. So I think that the 677.00 level is pretty clear for a tradeable bottom on ASML ( NASDAQ: ASML ). Any trade on ASML ( NASDAQ: ASML ), in my opinion, should be risk-defined right around $677.00.
As long as the stock closes above that level I think you’re okay to have a small position in and around this area while the stock fixes itself. Ideally can retrace back above these moving averages, though it will probably take a while to get back up. But at least you’re small and you can withstand some of that gyration.
So I think 677.00 looks like a pretty tradeable bottom here on ASML ( NASDAQ: ASML ) and we’ll want to see, to make sure that stock holds above that zone.
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