Chart of the week: Taiwan Semiconductor
This week we are focusing on big semi conductor company, Taiwan Semiconductor; TSM is the symbol. So let’s talk a look at this chart.
It looks like it’s a nice strong bullish uptrend here, but it may be stalling out and may give us an opportunity to get on board. So we can see this parabola here that I’ve drawn. A nice series of higher highs and higher lows, but it’s sort of stalling out over here.
Now we could certainly make an argument for an uptrend here and possibly just a little bit of a consolidation after this last big moonshot here from the early part of March to the second week in March. It came up from about $128 all the way up to $157. That was a big move up.
Volume and money flow are starting to come down
We do see volume starting to come down a little bit. Off of that big moonshot we do have a sell signal currently on the MACD. And you can see money flow has also gotten negative here. But that happens a lot with Taiwan Semi. We see big movements up and down on the Chaikin money flow.
And we saw back in October when that money flow really came down low and started to climb back towards the green area. We saw some buyers starting to come in and we saw the price action starting to improve in Taiwan Semi.
This recent pullback is good. I think a little bit of sideways movement here would be constructive, hitting around the 20 day moving average. The 20 day moving average comes in about $139.42. It closed at $141 yesterday. It was on either side of the moving average all day on Monday, April 1.
So a little bit of sideways action here but I think this stock has some room and some legs to move up towards the $175 – 180 area over time. Not gonna happen tomorrow, next week or even next month but certainly over a long period of time I think this stock’s got some room to go.
Certainly from the start of January the stock has been up huge – up almost 40% in 2024 already. But again, maybe a little sideways consolidation here to burn off some of this overbought condition here. Certainly on the weekly chart that is what we see, and maybe right back up again for Taiwan Semi.
So that’s TSM.
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