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ASML is a Dutch company and one of the world’s leading suppliers of semiconductor manufacturing equipment. It’s best known for developing advanced photolithography machines used to produce microchips. ASML is the only company that makes extreme ultraviolet (EUV) lithography systems, which are essential for creating the most advanced chips used in smartphones, computers, and AI hardware.

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ASML Weekly Chart

ASML is moving nicely to the upside, and it looks like we’re dealing with a new impulsive cycle that could take the price above the 2024(all-time) highs. The stock is currently trading in the middle of black wave three, which could even extend toward the 1200 area. It’s a strong and healthy uptrend that may not be finished anytime soon, but we should still expect some retracements along the way, ideally after reaching new all-time highs. Any pullback would likely offer new opportunities to join the trend, with first support to watch around 934. 

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ASML Daily Chart

Basic Impulsive Bullish Pattern shows that ASML can be rising within wave 5 of III of a five-wave bullish cycle. A Bullish Impulse Wave in Elliott Wave Theory is a five-wave pattern (1–2–3–4–5) that moves in the direction of an overall uptrend. Waves 1, 3, and 5 advance upward, while 2 and 4 are corrective pullbacks. Key rules include: Wave 2 never retraces beyond Wave 1’s start, Wave 3 is never the shortest, and Wave 4 doesn’t overlap Wave 1’s territory. Wave 3 is typically the strongest, driven by rising momentum and participation.

Basic Elliott Wave Bullish Impulse

For more analysis like this, you can watch our latest recording of a live webinar streamed on October 27 HERE.

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