On Thursday Taiwan Semiconductor stock price gained impressive 6.38%

The Taiwan Semiconductor stock price gained 6.38% on the last trading day (Thursday, 12th Jan 2023), rising from $81.78 to $87.00. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 5.23% from a day low at $84.42 to a day high of $88.83. The price has risen in 7 of the last 10 days and is up by 19.08% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 24 million more shares were traded than the day before. In total, 36 million shares were bought and sold for approximately $3.14 billion.

The last rating was given by Susquehanna on Jul 14, 2022. The price target was changed from 90 to 88.

The stock lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled.Given the current short-term trend, the stock is expected to rise 26.88% during the next 3 months and, with a 90% probability hold a price between $96.70 and $117.05 at the end of this 3-month period.

The Taiwan Semiconductor stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $80.07 and $78.86. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, December 28, 2022, and so far it has risen 19.08%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

On the downside, the stock finds support just below today's level from accumulated volume at $81.03 and $80.31.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Taiwan Semiconductor finds support just below today's level at $81.03. If this is broken, then the next support from accumulated volume will be at $80.31 and $66.62.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $4.41 between high and low, or 5.23%. For the last week, the stock has had daily average volatility of 2.61%.

Since the Taiwan Semiconductor has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Taiwan Semiconductor holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.