ASML Holding N.V. (NASDAQ: ASML) Potential continuation of the bearish momentum with breakdown of a consolidation triangle following bearish divergence on the Moving Average Convergence Divergence (MACD).
1. The price has broken down a consolidation wedge following slowing momentum with bearish divergence recorded on the Moving Average Convergence Divergence (MACD) technical indicator, which made a lower high from December last year to February this year while price made a higher high towards the US$700 resistance in this period. This could signal for further pullback in the price.
2. The price could continue to trade lower to retest the support zone at US$490-530, where the US$530 level is confluent with a swing low formed in December last year and a 50% Fibonacci retracement level.
3. The US$490 level is confluent with a previous horizontal resistance formed in September-November last year and the 61.8% Fibonacci retracement level. The Fibonacci retracement levels are calculated using a swing high of US$697.30 and swing low of US$361.56.
Red box = Resistance zone
Green box = Support zone
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