Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank
ASML broke through two supports Thursday after earnings release to stop at 864.50 support. However, the strength indicator RSI close below 40 threshold meaning it is now showing negative sentiment strong indicating ASML is llikely to move lower In coming days and weeks.
Next support at around 811.80 but a short-term minor bounce could be seen before next sell-off is likely to hit the stock
A close below could fuel the sell-off further down to 760 and the Gap from January
Medium-term on weekly chart a top and reversal pattern is being drawn. Well, actually two in combination; A Doji Evening and a massive bearish engulfing – this week’s candle – is currently taking the past 6 weeks of bullish market. That is a strong bearish signal if it ends the week around current levels.
To demolish the bearish trend short-term a daily close above 943.60. To even establishing a new bullish trend ASML must close the gap created Thursday i.e., close above 977.80