ASMLThe price keeps above 50 D and 200 D MAs. It has formed a pullback to old resistance now acting as support. I am maintaining my long position.
A1J4U4 trade ideas
ASMLASML is on its way to reach 110 euros. It has recently confirmed a double bottom pattern. I have been long for a while now.
ASML Holding NV - ASML - Daily - Key Hidden Levels Recent Sell "Key Hidden Levels - Earnings Support", available in marketplace add-ons, provides useful support and resistance levels that you can use to set up trades. Now you don't have to speculate on earnings, rather you can wait for earnings to be announced and then fade the move back to where earnings were reported.
Note all of the turning points that were previous earnings levels. These triangles and lines are drawn automatically and the lines extend out for a year (or 3,6,9 months).
I didn't forecast these turning points, I'm showing you the tool that will let you find them all by yourself.
Tim
ASML Holdings ASML - Reversal Pattern & DowntrendASML -
$38 BILLION market cap - $7.22 Billion in Sales - 19% margins. This is a rich valuation at 5.5 times sales, especially when revenues are very stable and margins are declining. Looked at another way, if you keep $1.4 billion each year on an investment of $38 billion, then it is a very low return of less than 4%. The market value has grown dramatically without much happening to revenues and without help from rising margins. Over time, this is a problem.
The latest earnings report was announced on Jan 21 and the stock jumped initially but has since faded and it appears that investors are seeing the writing on the wall that the stock is richly valued and they are selling. The sell-zone is marked in red and the earnings release date is marked in a red triangle.
There is an accelerating, parabolic trend line that broke back in October and since then a reversal pattern has built in the form of the well-recognized "head & shoulders" pattern.
Price and time projections indicate $74 to $68 targets on the downside. Risk to sell short is roughly $6/sh.
Tim 11:56AM EST, Tuesday, Feb 25, 2014
