Taiwan Semiconductor Stock Forecast
Taiwan Semiconductor stock upgraded from Sell Candidate to Hold/Accumulate after Friday trading session.
(Updated on Sep 22, 2023)
The Taiwan Semiconductor stock price gained 0.328% on the last trading day (Friday, 22nd Sep 2023), rising from $85.36 to $85.64. During the last trading day the stock fluctuated 1.55% from a day low at $85.45 to a day high of $86.77. The price has fallen in 6 of the last 10 days and is down by -4.46% for this period. Volume fell on the last day by -3 million shares and in total, 7 million shares were bought and sold for approximately $620.25 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
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The stock lies in the lower of a falling trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $85.11 is broken, it will firstly indicate a stronger fall rate. Given the current short-term trend, the stock is expected to fall -14.44% during the next 3 months and, with a 90% probability hold a price between $72.82 and $79.66 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
TSM Signals & Forecast
A buy signal was issued from a pivot bottom point on Thursday, September 21, 2023, and so far it has risen 0.328%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. The Taiwan Semiconductor stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $88.00 and $91.89. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).
Support, Risk & Stop-loss for Taiwan Semiconductor stock
Taiwan Semiconductor finds support from accumulated volume at $85.36 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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 $1.32 between high and low, or 1.55%. For the last week, the stock has had daily average volatility of 1.48%.
Taiwan Semiconductor is oversold on RSI14 (24). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stop-loss: $80.59 (-5.90%) (This stock has medium daily movements and this gives medium risk. Low RSI14 is 24 which reduces the risk some. There is a buy signal from a pivot bottom found 1 day ago.)
Trading Expectations (TSM) For The Upcoming Trading Day Of Monday 25th
For the upcoming trading day on Monday, 25th we expect Taiwan Semiconductor Manufacturing Company Ltd to open at $85.95, and during the day (based on 14 day Average True Range), to move between $83.71 and $87.57, which gives a possible trading interval of +/-$1.93 (+/-2.25%) up or down from last closing price. If Taiwan Semiconductor Manufacturing Company Ltd takes out the full calculated possible swing range there will be an estimated 4.50% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $85.36 (0.33%) than the resistance at $97.86 (14.27%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is Taiwan Semiconductor Manufacturing Company Ltd stock A Buy?
Taiwan Semiconductor holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.
Current score: -0.965 Open Broker Account
Hold/Accumulate UpgradedPredicted Opening Price for Taiwan Semiconductor Manufacturing Company Ltd of Monday, September 25, 2023
The predicted opening price is based on yesterday's movements between high, low, and closing price.
| Fair opening price September 25, 2023 | Current price |
|---|---|
| $85.95 | $85.64 (Undervalued) |
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Trading levels for TSM
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 87.28 | 1.91 % | |
| R2 | 86.77 | 1.32 % | ||
| R1 | 86.46 | 0.96 % | ||
| Current price: | 85.64 | |||
| Support | S1 | 85.45 | -0.223 % | |
| S2 | 85.14 | -0.588 % | ||
| S3 | 84.63 | -1.18 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 100.92 | 17.84 % | |
| R2 | 99.41 | 16.08 % | ||
| R1 | 97.86 | 14.27 % | ||
| Current price | 85.64 | |||
| Support | S1 | 85.36 | -0.327% | |
| S2 | 0 | . | ||
| S3 | 0 | . |
FAQ
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About Taiwan Semiconductor Manufacturing Company Ltd
Taiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support, acc... TSM Profile
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