Indications Suggest NYSE:TSM Could Be on the Verge of a Breakout.

Our stock screener has spotted TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:TSM.

Analyzing the Technical Aspects

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 10 out of 10 to TSM. Both in the recent history as in the last year, TSM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, TSM did better than 91% of all other stocks. On top of that, TSM also shows a nice and consistent pattern of rising prices.
• TSM is part of the Semiconductors & Semiconductor Equipment industry. There are 108 other stocks in this industry. TSM outperforms 92% of them.
• TSM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so TSM is lagging the market slightly.

Our latest full technical report of TSM contains the most current technical analsysis.

How does the Setup look for NYSE:TSM

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:TSM currently has a 8 as setup rating:

TSM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 203.45. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 191.76, a Stop Loss order could be placed below this zone.

How to trade NYSE:TSM?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Of course, there are many ways to trade or not trade NYSE:TSM and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.