TSM, Possible Flag-Formation, These Scenarios Important To Show!

Hello Traders Investors And Community, welcome to this analysis where we are looking at TSM 4-hour timeframe perspective, the recent events, the current formational structure, how possible confirmations can look like and what to expect the next times. The global stock market is approaching higher and recovered on the surface from the massive corona breakdowns seen this year as many retailers rushing into the market and smart money staying out it is important to look for stocks which have the potential to growth as there are many which arent and looking rather bearish than forming solid bullish formations. In this case, I detected the importances within TSM which can show up with some good possibilities, therefore it is important to confirm some meaningful levels in order to approach further in destiny.

Looking at my chart you can watch that TSM is trading within this huge channel formation marked in blue where the price already touched the upper and lower boundary several times to form this possible bull-flag, furthermore the price formed a overall wave-count where the wave A-D already formed and now setting up to form the final wave E in the structure. When the stock manages to do this and confirms the underlying support cluster at the lower boundary coming together with the 100-EMA marked in black there is some good possibility to bounce and confirm the bull-flag-formation properly. This will happen when the price crosses above the upper boundary with a protracted strong volatile bullish move, what will also be good is when the price pulls back to the upper boundary and confirms it as support.

Overall the stock has some solid potentials to confirm the bull-flag appropriately on the other side when the stock does not manages to hold the support and falls below it this will increase bearish pressure to the downside when the stock closes below the EMAs and lower boundary, nevertheless this is not the most likely scenario currently, the bullish confirmation is much more expected. This can be traded either aggressively with immediate entry or conservative with entry after confirmation, although the immediate entry is also possible here the conservative entry will be much better as it is confirming to a solid risk-reward in the structure. Targets will be firstly at around the 88.5 level, when the stock approaches this level it has to be elevated if it continues further or sets up to form a pull-back as supply entering, as there are still higher targets possible the bullish continuation can be taken seriously in consideration.

In this manner, thank you for watching, support for more market insight, all the best!
"If you have the conditions, you get the results."

Information provided is only educational and should not be used to take action in the markets.

Comment:

ANALYSIS UPDATE: TSM completed the whole wave count with the final wave E within the major channel formation.

After completing the whole wave count determination TSM moved on with a massive channel breakout to reach the final target zones.