ASML 4H Bearish Move ConfirmationPrice has successfully swept buy-side liquidity above previous highs and is currently trading within a major resistance region. The recent expansion created an imbalance (Fair Value Gap) below current price, leaving a notable inefficiency around the $1,780-$1,820 area. Markets frequently revisit these zones as liquidity is rebalanced.
If sellers begin defending current highs, the first objective would be a retracement into this imbalance region.
Key Levels
Resistance: $1,940 - $1,950 (Current Buy-Side Liquidity)
First Target: $1,700 - $1,730
Second Target: $1,550 - $1,580
But overall, the long-term ASML thesis remains intact.
The company continues to operate as one of the most strategically important businesses in the global semiconductor ecosystem, benefiting directly from AI, cloud infrastructure, and advanced chip manufacturing demand.
However, markets rarely move in straight lines.
With buy-side liquidity already swept, a hawkish Federal Reserve introducing valuation pressure, and management highlighting supply-side limitations, the risk-reward profile currently favors a retracement into lower inefficiencies before the next major expansion phase.
As long as price remains beneath current highs, a move toward the highlighted Fair Value Gap and lower liquidity zones remains a scenario worth monitoring.
Short