ASML short term R:R not attractive, earning report 19-Jan

3 янв. 2022 г.

After a very nice bull run sinds the covid crash, currently in consolidation looking for new direction, the incoming earning report might be an important trigger.

Game plan after ER:
If trigger down, long entry around 600, cut loose if under 550; while targeting 1100+, start to take profits in tranches from 960 onward.
If trigger up, seek short opportunity around 1k, targeting 600 region.

EW interpretation:
Either wave 3 is already complete and we're in wave 4 correction, or it can get one more extension higher before wave 4 starts.
Break out above 860 suggests extension of wave 3 toward 960, while drop below 722 should confirm wave 4 is already ongoing.
The declining stochastic and a RSI that is making lower highs indicating the second case is more likely.
In either cases, target region of wave 4 between 605 and 543 provide a great opportunity for long entries, while long term bull thesis considered broken if drop under 496.