ASML's stock price is trading below the 5-day moving average. Should I cut my losses?
7/22/2025 04:23pm
**Given the current technical indicators, it may be prudent to consider cutting your losses** if you are referencing the recent performance of ASML Holding (ASML). Here's a detailed analysis based on the latest data:
1. **Current Price vs. Moving Averages**:
- ASML's closing price as of July 21, 2025, was $719.68. This is below its 5-day moving average of $755.33.
- The stock is also trading below its 20-day ($789.34), 50-day ($766.23), and 200-day ($725.83) exponential moving averages.
2. **Technical Analysis Signals**:
- The technical analysis consensus for ASML is largely bearish. There are more neutral to bearish signals than bullish ones.
- The Moving Average Convergence Divergence (MACD) indicator is at -9.500, suggesting a sell signal.
- The Relative Strength Index (RSI) is at 29.470, indicating a sell signal.
- The stock is considered a "Strong Sell" based on its performance relative to moving averages.
3. **Recent Price Trend**:
- ASML's stock price has been experiencing selling pressure, with the trend being strongly bearish.
- The stock is below its Fibonacci pivot point performance value of $624.60.
4. **Market Sentiment and Indicators**:
- There is a consensus among analysts that ASML is overvalued based on various technical indicators.
- The stock's price is below key moving averages, which is a bearish signal.
In conclusion, the combination of ASML's current stock price trading below its moving averages, the bearish technical analysis signals, and the overall market sentiment suggesting overvaluation indicate that cutting your losses could be a strategic decision. However, it's important to consider your investment goals, risk tolerance, and the broader market context before making any decisions. If you are looking for a technical confirmation, waiting for a price reversal above the 5-day, 20-day, or 50-day moving average could be a signal to reconsider your position.