Taiwan Semiconductor Manufacturing Co. Ltd (TSM) , the world’s leading manufacturer of semiconductor chips is on several investors’ minds these times for quite a few causes.
The corporation is set to report earnings this week so let’s just take a appear at the charts.
In the every day bar chart of TSM, below, we can see that the shares have been cut down sharply the previous 9 months. A minimal in July did not keep up for long and charges sank however lessen. TSM trades under the declining 50-working day transferring average line and beneath the declining 200-day line.
The On-Balance-Volume (OBV) line has been weak considering that February telling us that sellers of TSM are far more intense than consumers. The Going Regular Convergence Divergence (MACD) oscillator (MACD) is bearish.
In the weekly Japanese candlestick chart of TSM, under, we see a photograph the place the shares likely have further more to fall. Costs are in a significant decline and trade under the negatively sloped 40-7 days going normal line. No bottom reversal sample and no decrease shadows inform me that traders are not interested in acquiring at recent degrees.
The weekly OBV line is even now in a extended-time period decline. The MACD oscillator is bearish.
In this daily Place and Figure chart of TSM, under, we can see that the shares achieved and exceeded a draw back rate focus on in the $72 spot.
In this weekly Position and Figure chart of TSM, under, we can see a value concentrate on in the $45 place.
Bottom-line technique: In the latter levels of a bear industry the shorts get anxious and sidelined consumers nervous — the end result can be a short-masking rally. TSM could knowledge 1 of these rallies at any time but the significant course is still down. Stay away from the very long aspect of TSM until eventually a base kinds.
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