Technical Pulse: Taiwan Semiconductor Manufacturing Co ltd October 22, 2021 229

Taiwan Semiconductor (US: TSM) has been ranging for the longest time. Recent technical has indicate a potential bullish upside to come:

 

  1. Elliott wave count indicate that the tripke three corrective wave has been complete after prices stays supported above US$108.89. Indicating that there is a chance that a sub-bullish impulse wave is coming.
  2. Descending triangle formation has enlarged over a period of time and as such, price action is leaning towards a potential breakout reversal to the upside.
  3. Looking at recent price action from 28th September onwards, the rounding bottom and the smaller bullish flag is a cup and handle pattern. With the piercing line candle on Thursday consolidating within the key immediate resistance zone at US$115.14-US$117.10, the upside breakout’s probability has increased.
  4. MACD shows a crossover and is heading above the zero line.

 

 

*Expected timeline of the trade is 15 weeks from the date of report issuance.

CHART LEGEND

 

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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