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 28^th 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