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VT 
ASML, a Dutch company, is a leading supplier of semiconductor equipment, noted for its advanced photolithography machines essential for microchip production. It is the sole producer of extreme ultraviolet lithography systems, crucial for modern chip manufacture.
ASML’s stock is seeing an upward trend suggesting a potential rise beyond 2024’s all-time highs. Currently, it trades in the middle of wave three, with projections extending towards 1200. Some pullbacks might occur, offering new entry opportunities, with first support expected around 934.
The Basic Impulsive Bullish Pattern indicates ASML is in wave 5 of III of its bullish cycle. As per Elliott Wave Theory’s Bullish Impulse Wave, this five-wave pattern aligns with a broader uptrend. Waves 1, 3, and 5 move upward, while 2 and 4 are corrective. Key rules include: Wave 2 never goes below the start of Wave 1, Wave 3 is not the shortest, and Wave 4 does not enter Wave 1’s area. Wave 3 is often the strongest due to rising momentum.
This text is based on information from FXStreet and does not offer investment advice. The views here are those of the authors exclusively.
ASML appears to be in a strong upward impulsive cycle, which aligns with the robust Q3 2025 earnings report released last week. The company raised its full-year guidance on the back of unprecedented demand for its new High-NA EUV systems. This suggests the current move has strong fundamental backing, aiming to surpass the highs we saw in 2024.
Given this momentum, we see opportunities in buying call options that target the 1200 price level in the coming months. The global semiconductor industry’s capital expenditure forecasts for 2026, which were revised upward by 15% this quarter, directly feed into ASML’s order book. This wave three extension seems highly probable as major chipmakers like TSMC and Samsung accelerate their transition to 2-nanometer production.
We should view any pullbacks toward the 934 support level as a chance to enter or add to bullish positions. Selling cash-secured puts with expirations in early 2026 could be a viable strategy to either acquire shares at a discount or simply collect premium. This approach is particularly useful, remembering the sharp but brief dips the stock experienced during the sector rotation in late 2024.
As the stock approaches its previous all-time highs, we can expect implied volatility to increase. This makes longer-dated call options, perhaps for March 2026, attractive as they can better withstand short-term consolidation. Looking back, implied volatility on ASML spiked nearly 30% during the last breakout in 2024, rewarding those who were positioned early.
The current price action is validating the view that we are in a powerful third wave of a larger bullish sequence. This pattern is supported by the company’s record order backlog, which has swelled to over €50 billion, a historic high. The path of least resistance remains upward, and corrections are likely to be short-lived.
