ASML, LVMH and AIR Forecast – European Stocks Drift Lower on Thursday

ASML Technical Analysis

ASML Holding is currently down a bit at the end of the day on Thursday as we continue to see a lot of noisy behavior between the 200-day EMA above and the 50-day EMA below. The 650-euro level seems to be support as well. So, it’ll be interesting to see how this plays out. It had shot straight up in the air and now seems to be working off some froth. The next earnings report is not until the 16th of July, so we may be in a little bit of a holding pattern as well, quite frankly.

LVMH Technical Analysis

LVMH looks very soft at this point in time as we continue to see a lot of noisy behavior, but it is approaching the psychologically important 450 euro level. There’s a gap in price action where we had basically just shot straight up in the air from about five years ago that could send this market down to the 430 euro level. So, watch that.

Short term rallies probably continue to be looked at with suspicion as the 50 day EMA is decidedly negative and is trying to break down below the 500 euros level. With that, I’d be very cautious with rallies, but looking at this, a short term bounce offering exhaustion might be a nice shorting opportunity.

AIR Technical Analysis

Airbus has been fairly quiet during the trading session on Thursday as we continue to hang around the 162 euro level, supported by the 50 day EMA, which of course is rising, acting a bit like a trend line. All things being equal, the market is probably going to continue to see buying on the dip. A little bit of action underneath the 50 day EMA could bring in some value hunting as well. The next earnings report is not until the 30th of July, so we have some time before that. It is worth noting that there is a large cluster of noise just above, so I think we are going to see Airbus act a bit sluggish here, but it still seems as if buyers are wanting to come in and push this thing higher.

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