$ASML: Is the stock primed for upside? Indicators are aligned.

ASML is one of the very few semis cap equipment cos. which have not broken out of their previous ATH. The stock is still at lower bound of the upward slopping channel which we have been following for a few months in this blog.

IN this chart below we are following a combination of various technical indicators to see the path of least resistance for the stock. The stock every time bounces back from the lower bound of the upward slopping fib retracement channel. During the 2022 bear market the stock made lower lows and after 5th leg of the bearish pattern on the Elliot’s wave the stock finally made its lows after 329 days of trading and down almost 50%. From its lows it also perfectly followed a textbook rally in 5 legs perfectly matching a bullish Eliots wave pattern before reaching ATH of 1030 $. The recent drawdown on the stock also happened when the stock went above the channel and was slammed back into penalty box by the sellers.

Surprisingly the stock also followed the same Eliots wave bearish pattern downwards and the price bottomed at the lows of the channel now almost 2 times in the weekly chart shown below. Each time the stock had a drawdown of almost 50% in 2 instances. As the stock is going sideways for quite a few weeks we can expect some bullish price action with 980 $ in the upper limit.

Verdict: ASML in an accumulation pattern. Major upside expected with 980 as our price target.