Trade of the Day
Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM)
(Current Price: US$89.64) – TECHNICAL SELL
Sell price: US$89.64 Stop loss: US$93.50
Take profit 1: US$82.00 Take profit 2: US$73.50
The price has been trading in a downtrend since June and it has broken down the main uptrend channel. There were also bearish signals such as a retest of previous horizontal support at US$96 turned resistance in August and a fresh bearish crossover on the Moving Average Convergence Divergence (MACD) technical indicator.
Should the price continue its bearish momentum, it could retest the first support level at US$82 which was a horizontal support level from April to May this year. It could then head to the next support level at US$73.50, a retest of the horizontal support formed in December last year.
Expected timeline of the trade is 4-12 weeks from the date of report issuance.
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