ASML dominated by bulls lifting the market higher throughout the day
ASML Holding N.V. (ASML) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ASML finished the week 9.17% higher at 319.36 after edging higher $0.37 (0.12%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ASML as at May 22, 2020):
Friday's trading range has been $5.00 (1.58%), that's below the last trading month's daily average range of $8.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ASML. Prices continued to consolidate within a tight trading range between 314.46 and 326.26 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, ASML actually lost -2.04% on the following trading day.
Prices are trading close to the key technical support level at 317.63 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 326.26 where further buy stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for ASML Holding. Out of 85 times, ASML closed higher 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.29% with an average market move of 0.45%.