AlphaJi

TSM - a decade hangs in the balanace

Long
NYSE:TSM   Taiwan Semiconductor Manufacturing Company Ltd
TSM now encounters the situation where the prior decade resistance is now being tested as a 'support' level.
Unfortunately for TSM since the Russian invasion of Ukraine the threat of China invading Taiwan has become ever more possible and as such the markets are attempting to price this in.
However this company is still very much fair value generating strong cash flows with no real rivals in the space. As such, if TSM holds and generates some structure around this support level it would be well worth a revisit.
Comment: If not however, the bearish bat potential couold send it down potentially dipping below the weekly 200 sma (a strong buy zone regardless) to as low as the low 40s. Which would be an all in zone. My stronger feeling however is buyers will come in for this stock soon.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.