Chart of the week: Taiwan Semiconductor
This week we’re specializing in large semi conductor firm, Taiwan Semiconductor; TSM is the image. So let’s speak a take a look at this chart.
It seems prefer it’s a pleasant sturdy bullish uptrend right here, however it might be stalling out and should give us a possibility to get on board. So we will see this parabola right here that I’ve drawn. A pleasant collection of upper highs and better lows, however it’s kind of stalling out over right here.
Now we may definitely make an argument for an uptrend right here and presumably just a bit little bit of a consolidation after this final large moonshot right here from the early a part of March to the second week in March. It got here up from about $128 all the best way as much as $157. That was a giant transfer up.
Quantity and cash stream are beginning to come down
We do see quantity beginning to come down a little bit bit. Off of that large moonshot we do have a promote sign at present on the MACD. And you’ll see cash stream has additionally gotten destructive right here. However that occurs so much with Taiwan Semi. We see large actions up and down on the Chaikin cash stream.
And we noticed again in October when that cash stream actually got here down low and began to climb again in direction of the inexperienced space. We noticed some consumers beginning to are available and we noticed the value motion beginning to enhance in Taiwan Semi.
This latest pullback is sweet. I feel a little bit little bit of sideways motion right here can be constructive, hitting across the 20 day transferring common. The 20 day transferring common is available in about $139.42. It closed at $141 yesterday. It was on both facet of the transferring common all day on Monday, April 1.
So a little bit little bit of sideways motion right here however I feel this inventory has some room and a few legs to maneuver up in direction of the $175 – 180 space over time. Not gonna occur tomorrow, subsequent week and even subsequent month however definitely over an extended time frame I feel this inventory’s bought some room to go.
Definitely from the beginning of January the inventory has been up big – up nearly 40% in 2024 already. However once more, perhaps a little bit sideways consolidation right here to burn off a few of this overbought situation right here. Definitely on the weekly chart that’s what we see, and perhaps proper again up once more for Taiwan Semi.
In order that’s TSM.
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