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ASML’s Journey Towards 1700: An Analysis of the Elliott Wave 3 and Fibonacci Breakout
ASML, a prominent player in the semiconductor industry, is setting its sights on a target of 1700. The journey towards this milestone is intricately tied to the Elliott Wave 3 and a .786 Fibonacci breakout. This article will explore this journey in detail.
Understanding the Elliott Wave Principle
The Elliott Wave Principle is a form of technical analysis that finance traders use to analyze market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.
# Basic principles of Elliott Wave
1. Wave 1: The initial wave, usually a sharp vertical rise.
2. Wave 2: A correction phase, leading to a drop in prices.
3. Wave 3: The largest and most powerful wave in a trend.
4. Wave 4: Another corrective phase.
5. Wave 5: The final push before market reversal.
Ralph Nelson Elliott, who is the founder of the Elliott Wave Principle, believed that market prices move in specific patterns, which traders and analysts refer to as waves.
ASML’s Elliott Wave Journey
ASML’s Elliott Wave Journey
ASML’s journey in the context of the Elliott Wave Principle has been quite interesting. Let’s break it down:
Wave 1: The Initial Surge
The initial surge witnessed ASML’s stock price rise from 90 to 900. This was a clear indication of a strong bullish sentiment in the market for ASML.
Wave 2: The Correction
The correction phase, or Wave 2, saw the prices drop from 900 to 360. This zigzag drop, while expected, was a key moment in ASML’s Elliott Wave journey.
Wave 3: The Current Scenario
ASML is currently in the midst of Wave 3. This wave is in progress but will be confirmed once there is a .786 Fibonacci breakout of 800. This could potentially be the most powerful wave and is eagerly anticipated by traders.
Fibonacci Breakouts and ASML’s Journey
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding ones, often associated with financial markets. A Fibonacci breakout refers to the point where the price of an asset moves through a significant Fibonacci level.
In ASML’s case, the .786 Fibonacci breakout level of 800 is the crucial factor that could confirm the progression of Wave 3.
The 1700 Target: A look into the Future
If ASML successfully confirms the start of Wave 3 with a Fibonacci breakout, the highest target would be 1700. This value is arrived at by considering 1.618 times the value of Wave 1.
The Role of Ted Aguhob
Ted Aguhob, a renowned Elliott Wave analyst, has been closely monitoring ASML’s journey. His insights and analyses have proven invaluable in mapping ASML’s Elliott Wave journey.
Conclusion
ASML’s journey towards 1700, guided by the Elliott Wave 3 and a .786 Fibonacci breakout, is a fascinating study of market trends and investor behavior. Whether ASML will hit the 1700 mark remains to be seen, but the journey is undoubtedly an interesting one.
“In the world of trading, understanding the patterns and trends is key. ASML’s journey is a testament to this.” – Anonymous Trader
In the end, it’s essential to remember that market trends are influenced by a multitude of factors, and while tools like the Elliott Wave Principle and Fibonacci breakouts provide useful insights, they don’t guarantee a certain outcom
