TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) Reveals Intriguing Technical Aspects. Here's What You Need to Know.

A possible breakout setup was detected on TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:TSM.

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 8 out of 10 to TSM. In the last year, TSM was one of the better performers, but we do observe some doubts in the very recent evolution.

• When comparing the yearly performance of all stocks, we notice that TSM is one of the better performing stocks in the market, outperforming 93% of all stocks. On top of that, TSM also shows a nice and consistent pattern of rising prices.
• TSM is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 93% of 108 stocks in the same industry.
• 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.
• The short term trend is negative, but the long term trend is still positive. So although the long term is still positive, this may be a trend turning.

Check the latest full technical report of TSM for a complete technical analysis.

Looking at the Setup

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 and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 186.28, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TSM in the last couple of days, which is a good sign.

How can NYSE:TSM be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

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 technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

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.