Exploring TAIWAN SEMICONDUCTOR-SP ADR's Technical Signals and Breakout Potential.

Our stockscreener has identified a possible breakout setup on TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:TSM for potential opportunities.

Technical analysis of NYSE:TSM

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, TSM scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, TSM is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that TSM is one of the better performing stocks in the market, outperforming 94% of all stocks. We also observe that the gains produced by TSM over the past year are nicely spread over this period.
• TSM is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 85% of 107 stocks in the same industry.
• TSM is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so TSM is performing more or less in line with the market.
• In the last month TSM has a been trading in the 133.03 - 148.43 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of TSM

How do we evaluate the setup for NYSE:TSM?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:TSM currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, TSM also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price.

Trading setups like NYSE:TSM

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.