TAIWAN SEMICONDUCTOR-SP ADR is setting up nicely for a breakout.

TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:TSM.

In-Depth Technical Analysis of NYSE:TSM

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple 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 and short term trends are both positive. This is looking good!
• 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 87% 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.
• In the last month TSM has a been trading in the 178.05 - 205.63 range, which is quite wide. It is currently trading near the high of this range.

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

Why is NYSE:TSM a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:TSM has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, TSM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 201.20. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 194.54, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like 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.

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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.