The Semiconductor Equipment sub-sector is the bedrock, the picks and shovels of the Semiconductor industry. Semi companies – especially the makers of this expensive manufacturing equipment – have taken a beating under the dual pressures of China trade restrictions (that preceded Trump) and of course, Trump’s tariff wax-on/wax-off routine.
However, ASML is the cream of the Semi Equipment crop from the perspective of its wide moat and advanced technology (EUV Lithography). I now have it on my watch list and would take it for a trade at least or, if a global bear market is further out than originally anticipated (2025), an investment.
The daily chart shows a moderate recovery from the April low, a test of support at the SMA 200 (orange) and a gap up yesterday on the happy US/Europe trade headlines. It is pulling back a bit this morning in pre-market. Up volume has been better than down volume, RSI and MACD are positive and again, if you don’t think a global bear market is around the corner, this would be an investment grade addition to a portfolio.
The caution points/stop losses would be the SMA 200 (735) and the associated visual support (very tight tolerance) and the SMA 50 (691) and associated visual support (lenient). As usual, I’ll add that a miserly buyer might wait to see if she can get 691, but as long as the global rally persists I would not bet on that.
As for targeting, if ASML takes out the resistance noted around 780 the measured target (for swing traders) would be the 980 area. But there is a gap above there, so that could also come into play.
NFTRH++ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
This hit my screener two nights ago. I’m interested and may join.
I didn’t buy it today, but thinking about it for sure.
I joined and am long $ASML due to your post plus my fondness for the 200 day governor (‘200dg’) setup that makes my heart melt.
I finally took it today. What do you mean by “governor”, Guv’na? Is that a mental stop or something like that?
The ‘governor’ refers to the 200dma serving as a cap on a daily chart setup. Keeps a cap on it, but once approaching I look for the first hint of engaging and starting to curl up and over it. Most of my NFTRH++ setups on the long side have been of the ‘200dg’ variety. The best example is the $SRUUF setup from last week. https://nftrh1.wordpress.com/2025/06/03/nftrh-sruuf-200dg-setup/
I’m trimming up $ASML here by 40%. Thanks for this setup.