I closed a week-old ASML call option contract today for a tidy profit after a textbook momentum exit. About a week ago, ASML had a bearish day and dropped to around the 1610 level, creating the perfect entry point to build a long position. The share price spent most of last week consolidating and staying flat, but it finally began to recover some ground yesterday before completely popping today.
As the price shot up, I monitored the technicals closely and noticed the RSI pushing high while the MACD histogram started to peak, signaling that intense buying momentum was beginning to face profit-taking and increased selling pressure. Recognizing that the quick run-up was ripe for a cool-off, I locked in the gains and exited the contract. It feels great to execute the plan perfectly, read the momentum shifts accurately, and walk away with a happy, clean win on this trade.
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