ASML in a volatile rising wedge

Looking at the weekly chart of ASML since January 2021, the price reached an all-time high in November 2021, followed by a downtrend. A bottom formed around €400, with a low point of €372. Regarding the pattern, a W-formation seems more appropriate than a Head and Shoulders pattern, given the left shoulder dips rather deep. The upward trend within a somewhat volatile rising wedge will eventually be put to the test, especially with the looming news about potential export restrictions to China. Should the price rise in a short period of time, and particularly in a straight line upward, possible bearish divergence is something to watch out for. This is especially the case if the RSI surpasses 72.42 and the price stays below €746.8. However, the MACD also suggests an impending bearish cross.

Based on the weekly and daily charts, signals such as the mostly bearish rising wedge pattern, potential export restrictions to China, potential bearish divergence in the RSI, and the MACD that may cross bearish, suggest that ASML could be facing a potential drop. However, the previous golden cross and the two-time support found on the MA200 also provide hope for potential upward movement.

Keep calm, do your own research! Trade safely and manage your risk.
(Disclaimer: This is not financial advice)


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