| March 25th, 2021 Strong 'Buy' Signal for ASML Holding Dear Reader, Yesterday, we looked at a OBV Chart of VUZI, noting that the stock’s On Balance Volume was sloping up and buying pressure was exceeding selling pressure. For today’s Trade of the Day e-letter we will be looking at a monthly chart for ASML Holding N.V.. stock symbol: ASML. Before breaking down ASML’s monthly chart let’s first review what products and services the company offers. ASML Holding N.V. develops, produces, markets, sells, and services advanced semiconductor equipment systems consisting of lithography, metrology, and inspection related systems for memory and logic chipmakers. Now, let’s begin to break down the monthly chart for ASML stock. Below is a 10-Month Simple Moving Average chart for ASML Holding N.V. 
Confirmed ‘Buy’ Signal for ASML As the chart shows, back in February 2019 the ASML 1-Month Price crossed above the 10-Month simple moving average (SMA). This crossover indicated the buying pressure for ASML stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish uptrend. Now, as you can see, the 1-Month Price is still above the 10-Month SMA. That means the bullish trend is still in play! As long as the 1-Month price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs and should be purchased. Our initial price target for ASML is 624.86 per share. Profit if ASML is Up, Down or Flat Now, since ASML’s Monthly Price is currently trading above the 10-Month SMA and the stock will likely rally from here, let’s use the Hughes Optioneering calculator to look at the potential returns for a ASML call option spread. The Call Option Spread Calculator will calculate the profit/loss potential for a call option spread based on the price change of the underlying stock/ETF at option expiration in this example from a 10.0% decrease to a 10.0% increase in ASML at option expiration. The goal of this example is to demonstrate the ‘built in’ profit potential for option spreads and the ability of spreads to profit if the underlying stock is up, down or flat at option expiration. Out of fairness to our paid option service subscribers we don’t list the option strike prices used in the profit/loss calculation. The prices and returns represented below were calculated based on the current stock and option pricing for ASML on 3/24/2021 before commissions. | 
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