Watch These ASML Price Levels as Stock Drops on Uncertain Growth Outlook
ASML shares tumbled Wednesday after the Dutch semiconductor-equipment maker said that it couldn't guarantee growth in 2026 owing to economic and geopolitical factors, as tariff uncertainty weighs on the company.
The stock broke down from a rising wedge pattern on above-average volume in Wednesday's trading session, potentially setting the stage for follow-through selling.
Investors should watch key support levels on ASML's chart around $695 and $650, while also monitoring resistance levels near $775 and $855.ASML Holding (ASML) shares tumbled Wednesday after the Dutch semiconductor-equipment maker said that it couldn't guarantee growth in 2026 owing to economic and geopolitical factors, as tariff uncertainty weighs on the company.
The company's shares had traded mostly sideways leading into its quarterly results after President Trump over the weekend threatened 30% tariffs on EU imports from the start of next month. Although semiconductors are currently exempt from U.S. levies, the president said this week he will probably impose tariffs on chips, along with pharmaceuticals, by Aug. 1, according to reports.
ASML shares dropped more than 8% Wednesday to around $754, posting the biggest decline in the Nasdaq 100. The stock has gained 9% since the start of 2025 but has lost nearly 30% of its value over the past 12 months as the company's growth outlook has clouded.
Below, we take a closer look at ASML's chart and apply technical analysis to identify price levels worth watching out for.
Rising Wedge Breakdown
ASML shares broke down from a rising wedge pattern on above-average volume in Wednesday's trading session, potentially setting the stage for follow-through selling. Moreover, the drop coincided with the relative strength index falling below its neutral threshold to confirm accelerating selling momentum.
However, in a win for the bulls, the stock closed well above its intraday low, forming a dragonfly doji—a candlestick pattern that can signal a bullish reversal, especially since today's low attracted buying interest near the closely watched 200-day moving average (MA).
Let's identify support and resistance levels on ASML's chart that investors will likely be watching.
Support Levels to Watch
A close below the 200-day MA could see the shares initially test support around $695. This area may attract buying interest near the December and March troughs, which also closely align with the April countertrend peak.
Selling below this level could trigger a decline toward $650. Investors may look to accumulate shares in this region near the prominent 2024 low and a range of corresponding trading activity during April.
Key Resistance Levels to Monitor
The first overhead level to monitor sits around $775. The shares could run into resistance in this area near a horizontal line that connects multiple peaks and troughs on the chart from last August through to this month.
Finally, a recovery above this level could propel a rally toward $855. Investors who have bought ASML shares at lower prices may look to lock in profits in this location near a trendline that links a range of price action on the chart from April to October last year.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.
Read the original article on Investopedia
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Trump's watered-down copper tariffs almost crush Comex premium
By Lewis Jackson BEIJING (Reuters) -Benchmark copper prices on the London Metals Exchange rose at the open on Thursday as markets continued to claw back the once-mighty U.S. copper price premium in response to the scaled-down U.S. copper tariffs imposed by President Donald Trump. Trump said on Wednesday the United States would impose a 50% tariff on copper pipes and wiring, but the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. The surprise move dragged down U.S. copper prices more than 18% on the Comex exchange HGc2 and unwound a large part of the premium over the London global benchmark CMCU3 that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices. 'We think the LME flips to a premium in the short term due to excess inventories in the U.S.," Anant Jatia, founder and chief investment officer at Greenland Investment Management, a hedge fund specialising in commodity arbitrage trading, told Reuters. "Over time Comex moves back to a premium as inventories draw and downstream tariffs leave a sustained U.S. premium." Benchmark LME copper gained 0.9% to $9,785 a metric ton after markets opened on Thursday. U.S. September Comex copper futures HGc2 briefly hit $4.5095 a lb or $9,941.6 per metric ton, down 19%, shortly after the LME opened before moving back up to hover around 4.5635 a lb or 10,061 a metric ton. At the low, the premium over the London benchmark had fallen to just $157 a ton from recent levels above $3,000 a ton. That premium has sucked in enormous volumes of copper from around the world this year. As recently as a few weeks ago, traders were still redirecting cargoes to the United States in a rush to get copper in country before the tariffs. Trump first teased the tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products. Yet in a proclamation released by the White House, the administration said the tariff will apply starting this Friday only to pipes, tubes and other semi-finished copper products, as well as products that copper is heavily used to manufacture, including cable and electrical components. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25 minutes ago
- Yahoo
Samsung profit tumbles as it struggles to catch up in the AI chip race
Just a few years ago, Samsung Electronics stood as a leading force in the global semiconductor race, dominating one chip sector and eyeing Taiwan's TSMC in the battle for supremacy in another. But recent stumbles – including its failure to capitalize early on the artificial intelligence boom – has left it outmaneuvered, experts say, as the company struggles with deepening market share losses. Samsung's second-quarter operating profit plummeted 55% to 4.7 trillion won ($3.4 billion), down from 10.4 trillion won ($7.5 billion) a year earlier, though its revenue increased slightly compared to the same period last year. Operating profit for its chip division, historically a cash cow that used to account for two-thirds of its total profit, shrank by nearly 94% from April to June compared to a year ago. It blamed the worse-than-expected performance on inventory value adjustments, low utilization rate for its contract chipmaking business and continued fallout from US export controls on advanced AI chips to China – a key market for Samsung. Thursday's disappointing earnings report reignites concerns about the future of the embattled South Korean tech giant. Samsung warned investors of its dismal performance in its earnings projection earlier this month. The results come on the heels of a $16.5 billion deal with Tesla, announced this week, to produce its new chips – a move expected to boost Samsung's outlook. Looking ahead for the second half the year, Samsung said it plans to proactively meet the growing demand for high value-added and AI-driven products and continue to strengthen competitiveness in advanced semiconductors. How Samsung lost its edge South Korea's largest conglomerate has run into significant headwinds in recent years across both of its key revenue streams: the manufacturing of memory chips, which help devices store data, and logic chips, which power data processing and computation. Once the industry's leading memory chipmaker, Samsung has lost ground to rivals like South Korean SK Hynix and American Micron Technology, particularly in the fast-growing market for high bandwidth memory (HBM) sector. HBM, made up of stacks of DRAM memory chips (dynamic random access memory) used for short-term data storage, are essential for AI processors developed by companies like Nvidia and AMD. Meanwhile, Samsung's logic semiconductor business trails industry leader TSMC both in cutting-edge chip technologies and market share. In the first quarter of this year, SK Hynix overtook Samsung to lead the global DRAM market, while TSMC extended its dominance in logic chips with a 68% market share, compared to just 8% for Samsung, according to market research firm TrendForce. Sanjeev Rana, head of Korea research at CLSA, a brokerage firm, said a series of 'missteps' by Samsung – most notably management's failure to anticipate the surge in AI demand – has contributed to its current struggles. 'They were slow to recognize the coming AI revolution, and they bet on some other products, other technologies, which, in hindsight, didn't turn out to be very good bets,' he said, explaining that Samsung overlooked the potential of HBM initially. As a result, Samsung has so far missed out on being a supplier for its most advanced high-bandwidth memory product to Nvidia, which accounts for nearly 80% of global HBM demand last year, according to Rana. The product has repeatedly failed Nvidia's performance tests, though he expects the company to clear them in the next two months. While Samsung announced in June that it managed to secure orders from AMD and Broadcom, rivals SK Hynix and Micron have already begun delivering samples of more advanced memory chips to customers. At the same time, Samsung's logic chip business – once central to its ambition to rival TSMC – is also under mounting pressure. Despite tens of billions of investments over the past few years, the company has been unable to secure meaningful orders for its advanced chips, leading to underutilized facilities, Rana said. Last year, CLSA estimated that Samsung's contract chipmaking business posted an operating loss of 5.6 trillion won ($4.1 billion). That figure is expected to rise to 6.6 trillion won ($4.8 billion) this year. US restrictions on the sale of advanced chips to China have also taken a toll on Samsung's revenue, as shipments to Chinese clients and projects were forced to pause pending regulatory review, said Joanne Chiao, an analyst at TrendForce. But with some chips now having cleared the review process, the second quarter is expected to be the most affected period, she added. A potential turnaround thanks to Tesla Tesla offered Samsung a lifeline this week. Its CEO Elon Musk announced that the electric vehicle company has tapped the Korean chipmaker to make its new chips for self-driving cars and humanoid robots in a $16.5 billion deal. 'Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip,' he said in a post on X. 'Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress.' Samsung's shares surged more than 6.9% to reach their highest level since September following news of the deal. Tesla currently sources its AI4 chips, which power its advanced driver assistance systems called Full Self-Driving (FSD) software, from Samsung, but it enlisted TSMC to produce its AI5 chips, according to Musk. The deal came after Samsung postponed the operational start of its chipmaking plants in Taylor, Texas to 2026 from its original schedule of 2024, as it struggled to win customers for the project. Ray Wang, research director focusing on semiconductor industry at Futurum Group, called the deal with Tesla 'significant,' saying it could boost Samsung's struggling profitability and validate its capabilities in producing advanced chips. The agreement will also help increase utilization of its Texas facilities, improving the company's return on investment, he added. Rana said that although mass production for the Tesla project won't begin until 2027, the deal is a boost to market sentiment and represents 'a big word of confidence.' 'The management has done a lot of restructuring for this business in the last 12-15 months or so, so I think they now understand what the problems were, and they have made some efforts to resolving those issues,' he said. 'Things will get better from the second half (of the year).'
Yahoo
25 minutes ago
- Yahoo
South Korean auto shares dip after Korea-U.S. trade deal
Seoul (Reuters) -Shares of South Korean automakers Hyundai Motor and Kia Corp fell on Thursday after U.S. President Donald Trump said the U.S. will charge a 15% tariff on imports from South Korea, including autos, as part of a trade deal. Hyundai Motor shares were down 2% and Kia Corp stock lost 3.3%. The deal reduces U.S. tariffs on South Korean autos from 25% to 15%, the same rate as Japanese car imports. Before Washington imposed 25% auto tariffs in April, there were zero tariffs on most South Korean auto imports under a bilateral trade deal, while there was a 2.5 percent tariff on Japanese auto imports. The deal removes the 2.5% advantage in tariffs South Korean automakers had enjoyed over Japanese rivals under the Korea-U.S. free trade deal, analysts said.
