Fri 20'th Apr 2018
Taiwan Semiconductor Manufacturing Company Ltd Stock Analysis
Technical stock analysis for Fri 20'th Apr 2018
Taiwan Semiconductor Manufacturing Company Ltd fell by -1.47% in the last day from $39.53 to $38.95 and has now fallen 5 days in a row. The price has fallen in 6 of the last 10 days and is down by -8.18% for this period. Volume fell in the last day along with the stock, which is actually a good sign as volume should follow the stock. In the last day the trading volume fell by -12.26 million shares and in total 15.22 million shares bought and sold for approximately $592.74 million.
|Shorts||2.68% ( 2018-03-29 )|
|Cash||38 447.4 mill|
|Loans||9 884.9 mill|
Taiwan Semiconductor Manufacturing Company Ltd lies in the lower of a wide and falling trend in the short term, and this will normally pose a very good buying opportunity. A break down the bottom trend line at $38.72 will firstly indicate a stronger fall rate. Given the current short-term trend, the stock is expected to fall -4.45% during the next 3 months and, with 90% probability hold a price between $37.00 and $42.50 at the end of this period.
There are few to none technical positive signals at the moment. Taiwan Semiconductor Manufacturing Company Ltd holds sales signals from both short- and long-term moving averages. In addition, there is a general sales 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 $41.73 and $43.44. A break-up above any of these levels will issue buy signals. A sales signal was issued from a pivot top point on Thursday April 12, 2018, which indicates further falls until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Relative Strength Index (RSI)
RSI14 is 32 and the stock is currently not being overbought or oversold
Support & Resistance
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days. On the upside the stock meets some resistance just above today's level from accumulated volume at $39.53, $41.88 and $43.59.
The stock is about to test the resistance from accumulated volume at $39.53 and this may cause the stock to take a minor break or get into a more sideways move for a few days.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $0.72 (1.85%) between high and low. For the last week, the stock has had a daily average volatility of 1.81%.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
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Taiwan Semiconductor Manufacturing Company Ltd holds several negative signals and is within a wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.
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