Faulty Research or A Funny Thing Happened While Looking at Chips

• Posted by Greg Harmon
• on September 16th, 2013

ASML Holding, $ASML, makes the machines that make chips. When I learned this I was immediately interested because of the possibility that I could make my own chips. Maybe healthier than the ones from the store and get my wife to let me eat them more often. Sadly after deep research, (one page view) it turns out it is not that kind of chip, but the ones they use in computers and ‘i’ things. So much for my foray back into Fundamental Analysis. But a glance at the chart gave me

some comfort anyway. The stock had traced out a AB=CD pattern to a peak at about 93.50 and was pulling back, but negated that when it caught support at the rising 50 day Simple moving Average (SMA) and turned back higher. Now retesting that high, a break higher carries a Measured Move to 100.70. The Hundred Roll. The Relative Strength Index (RSI) is bullish and rising with a Moving Average Convergence Divergence indicator (MACD) that also supports more upward price action. This looks like a good long play versus a stop loss in the gap for a run to 100 at least. The 3-box Point and Figure chart is looking for it to go much higher with a price objective of 132. That would not stink would it?

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