SIA Chartsā relative strength rankings help investors identify opportunities in stocks which are outperforming their peers or index benchmarks on a relative basis. Outperformance often reflects improving investor expectations for strong company growth or sector growth. The rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. The power of the SIA platform is its ability to identify these changing money flow trends.
Today, we are going to highlight an Electronics and Semi-Conductor Name, ASML Holding N.V.(ASML). The Electronics and Semi-Conductor Space has shown resilience of late as it still holds the 4th spot within the Favored Zone of the SIA Market Sector Report after repositioning upwards 5 spots in the last quarter. ASML Holding has also shown outperformance of late by way of its movement, up 54 spots in the last month and 39 spots in the last quarter, within the SIA Nasdaq 100 Index Report where it currently maintains the 15th position. The shares entered the Favored Zone of this report recently on September 18th at $927.80.
In looking at the attached candlestick chart of ASML, we see rather wild swings in the trading pattern over the past 5 years, but the latest swing is in favor of the bulls. Most recently, the shares bottomed at just under the $600.00 area in April of this year, which coincided with the bottom in September of 2023, a sign that market participants found this price point fair value for the shares and began accumulating the name. The strength of the shares has carried the price towards the psychological round number of $1000 which may act as near-term resistance, but if the shares manage to break above this level then ASML may be posed to reach its all time high from June of 2024, of just under $1100.00. Letās examine the Point and Figure Chart to see what may lie ahead for the shares.
In the Point and Figure chart at a 2% scale we observe that the shares have been very strong of late, with a rising column of Xās lasting 16 boxes without a 3-box reversal. The shares have broken past prior resistance points of $860.00 and $950.00 along the way. Next resistance is now at $1049.27 and, above that, $1091.66. To the downside, support is at its 3-box reversal of $ 877.98 and, below that, $843.89, which was the prior resistance point. The shares currently exhibit strong near-term strength against the asset classes and a bullish double top pattern and with an SMAX score of 9 out of 10.
ASML Holding NV is founded in 1984 and based in the Netherlands. ASML is the leader in photolithography systems used in the manufacturing of semiconductors. Photolithography is the process by which a light source is used to expose circuit patterns from a photomask onto a semiconductor wafer. The latest technological advances in this segment allow chipmakers to continually increase the number of transistors on the same area of silicon, with lithography historically representing a meaningful portion of the cost of making cutting-edge chips. Chipmakers require next-generation EUV lithography tools from ASML to continue past the 5-nanometer process node.
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