Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) – ASML Holding NV (ADR) (NASDAQ:ASML) on the daily chart has broken down from the important support zone at $89 and is currently trading below its 50 day moving average which stands at $89.50 and also its 200 day moving average at $90.61. The recent sell off in the NASDAQ has magnified the fall in the stock as the market shifted from high beta stocks to defensive over the last couple of weeks.
The momentum indicators for the stock have given a clear sell signal from the levels of $93.71 and have yet to give any sign of recovery which can be clearly seen in the price action in the stock. Similarly the relative strength index of the stock has slid below important zones and slid into bearish territory and have also not shown any sign of recovery in the stock.
The weekly charts for ASML Holding NV (ADR) (NASDAQ:ASML) have broken below its 50 day moving average and are showing first signs of correction from the uptrend that the stock has been in over the last one year. The 50 day moving average on the weekly charts is currently at $88.73 which believe would act as first point of resistance if we were to see any kind of pull back in the stock. The momentum indicators and the relative strength index for the stock are giving sell signals alongwith bearish divergences which confirm our bearish stance and provide us a target of $72 in the very short term.
ASML Holding NV (ADR) (NASDAQ:ASML) released its Q1 2014 earnings and reported a slide of 49% in net profit and also downgraded its revenues for the consequent quarters. News wasn’t well received on the street and traders sold the stock after the earnings call.