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On Thursday Taiwan Semiconductor stock price gained impressive 9.79%

StockInvest.us, 1 month ago

Taiwan Semiconductor

The Taiwan Semiconductor stock price gained 9.79% on the last trading day (Thursday, 18th Jan 2024), rising from $102.95 to $113.03. It has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 3.57% from a day low at $109.48 to a day high of $113.39. The price has risen in 7 of the last 10 days and is up by 12.84% 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, 39 million more shares were traded than the day before. In total, 56 million shares were bought and sold for approximately $6.33 billion.

On Nov 16, 2023, it was reported that UBS gave TSM a "Buy" grade with a "hold" action.

The stock has broken the strong rising the short-term trend up and an even stronger rate of rising is indicated. For any reaction back there will now be support on the roof on the current trend broken at $108.09, a level that may pose a second chance to hit a runner. According to fan-theory $115.85 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

Taiwan Semiconductor

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 $103.26 and $101.44. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, January 04, 2024, and so far it has risen 14.02%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

On the downside, the stock finds support just below today's level from accumulated volume at $102.95 and $97.44.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 $102.95. If this is broken, then the next support from accumulated volume will be at $97.44 and $92.91.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $3.91 between high and low, or 3.57%. For the last week the stock has had daily average volatility of 2.54%.

Several short-term signals are positive and the stock has broke the rising trend up, which indicates an even stronger rate of rising. We conclude that the current level may hold a buying opportunity as there is a fair chance for Taiwan Semiconductor stock to perform well in the short-term period.We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.

Check full Taiwan Semiconductor forecast and analysis here.