The semiconductor industry and stock sector has been very hot the last 2 years. Advanced Micro Devices (AMD) is up over 600% in that time period. nVidia Corporation (NVDA) has returns exceeding 700% and Micron Technologies (MU), who seems to be the laggard at a 290% return. This update
I was browsing some investment websites this morning reading up on this hot sector. As I was looking for some possible ways to continue to play this hot stock sector, I came across this article from Investors Business Daily.
This Netherlands-based company produces photolithography machines that can print microscopic features on chips. According to the article, these microscopic features will enable Moore's Law to continue, where the number of chips increase and cost goes down every 18 to 24 months.
This company could offer a long-term play on a hot sector. If you haven't read the linked article above, I strongly suggest doing so before continuing. I'll wait.....
A company that has a nice backlog of sales with the probability of acceleration in delivery seems to be a nice backstory for the fundamentals. A strong fundamental story is needed to help out the technical story. So let's review some ASML Holdings (ASML) stock charts and see how their technical story is shaping up!
ASML Holdings (ASML) website can be accessed here.
ASML Holdings (ASML)
This first chart for ASML Holdings (ASML) is a 10 year weekly candlestick chart. I've placed a Fibonacci Extension Tool at the beginning of an uptrend that began in November 2008. Kind of interesting that this stock bottomed out 4 months earlier than most stocks in March 2009 when this bull market rally began.
There is a confluence of Target Lines from the 3 different Fibonacci Extension Tools I overlaid on the chart. The confluence area is broken down as follows…...
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I calculate some long-term price objectives for the company
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