ASML runs into sellers again around 372.98
ASML Holding N.V. (ASML) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ASML finished Wednesday at 362.38 losing $7.87 (-2.13%), slightly underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 369.10, the share confirmed its breakout through the prior session low after trading up to $6.74 below it intraday.
Daily Candlestick Chart (ASML as at Sep 16, 2020):
Wednesday's trading range has been $10.62 (2.85%), that's slightly above the last trading month's daily average range of $8.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ASML.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 356.52 (S1). Prices broke below the key technical support level at 368.14 (now R1), which is likely to act as resistance going forward. After having been unable to move above 374.76 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 372.98. The last time this happened on September 11th, ASML actually gained 2.42% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ASML Holding. Out of 400 times, ASML closed higher 55.50% 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 60.75% with an average market move of 1.87%.