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ASML (ASML) Crossed Above the 20-Day Moving Average: What That Means for Investors

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From a technical perspective, ASML (ASML - Free Report) is looking like an interesting pick, as it just reached a key level of support. ASML recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for ASML

Over the past four weeks, ASML has gained 6.1%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

The bullish case solidifies once investors consider ASML's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.

Investors may want to watch ASML for more gains in the near future given the company's key technical level and positive earnings estimate revisions.


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