The semiconductor stock has long-term support in place
Every day this week, we're going to highlight one of Schaeffer's top seven picks for 2023. Next up, have semiconductor pick in ASML Holding N.V. (NASDAQ:ASML. To access the entirety of the 2023 report, click here.
Netherlands-based semiconductor giant ASML Holding (ASML) recently broke out of a monthly bull flag pattern. The equity has also found support at its 5-year moving average, which has been significant in past downturns. Additional support was found at the second half of 2020’s support/resistance level at the round $400 mark.
Looking further, for the first time, the stock’s year-to-date price moved back above its 2022 anchored volume weighted average price (AVWAP) level in November. Essentially, ASML has a monopoly on the EUV lithography machines that are used to fabricate semiconductor chips. Finally, the stock is sporting a Schaeffer's Volatility Scorecard (SVS) of 86, suggesting ASML’s performance over the past 12 months has exceeded options traders’ volatility expectations.