Taiwan Semiconductor Manufacturing Company Ltd.NYSE
Description
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Taiwan Semiconductor Manufacturing Company (TSM) broke last month above the long-term Channel Up and immediately pull-back. So far it has been almost 1 month of sideways trading supported by the 1D MA50 (blue trend-line), which has been holding since November 02 2023.
The 1D RSI is on a Channel Down, i.e. a Bearish Divergence and every time it formed this within the Channel Up, the stock corrected to at least the 1D MA200 (orange trend-line) by -18.73%. This time the 1D MA200 is considerably higher, so with this Bearish Divergence giving more probabilities to extending the pull-back, we do expect one last Low but not as strong as the previous corrections.
This time a -18.29% decline from the top would make a healthy test of the 1D MA100 (green trend-line), good enough to continue the long-term bullish trend with new buyers in the market. The 1D MA50 break, would be the confirmation. As a result, we are now set a short-term target on TSM at $129.00.
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Hey! Thanks for the chart. I've been waiting to see it touch that 130 level one more time before I enter. What are your thoughts on this happening before earnings? And what do you make of the CPI print today and the numbers they releaser? Stock held up better than I thought it would. Would love to hear your thoughts. Thanks again