Key Takeaways
- 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.
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As of the date this article was written, the author does not own any of the above securities.