ASML has progressed very nicely to the upside over the last 12 months, and it looks like we could see even more gains later on, as the recent pullback clearly unfolded in three waves. However, it also seems that this correction could be more complex than initially expected, but it is still a counter-trend move that should eventually lead to more upside.
We will maintain a bullish outlook, although there could still be a retest of lower support levels, ideally around 1308, where we also see an unfilled gap from April 8th. We know that when gaps are filled, they can often trigger a strong rebound, especially within a larger impulsive trend like we are seeing here.
So after this dip, we would expect more upside, with wave five likely to unfold either after a triangle or a slightly deeper wave four, while the key support zone remains between 1300 and 1240.
Highlights:
- Bullish trend intact, pullback seen as three-wave correction
- Key support at 1308, gap from April 8th
- Broader support zone between 1300 and 1240
- Expecting continuation higher into wave five after correction completes
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