The Taiwan Semiconductor $Taiwan Semiconductor Manufacturing(TSM)$ stock price fell by -0.407% on Friday, 14th Jul 2023 from $105.57 to $105.14. During the last trading day the stock fluctuated 2.32% from a day low at $104.86 to a day high of $107.30. The price has risen in 6 of the last 10 days and is up by 4.47% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -9 thousand shares and in total, 9 million shares were bought and sold for approximately $949.11 million.

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 26.91% during the next 3 months and, with a 90% probability hold a price between $127.27 and $146.50 at the end of this 3-month period.

TSM Signals & Forecast

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 $102.18 and $101.69. A breakdown below any of these levels will issue sell signals. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Wednesday, June 14, 2023, and so far it has fallen -2.11%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for Taiwan Semiconductor stock

Taiwan Semiconductor finds support from accumulated volume at $103.21 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock is usually traded at a good volume, and with minor daily changes, the risk is considered to be low. During the last day, the stock moved $2.44 (2.32%) between high and low. For the last week, the stock has had daily average volatility of 2.10%.

Our recommended stop-loss: $101.12 (-3.82%) (This stock has low daily movements and this gives low risk. There is a sell signal from a pivot top found 20 days ago.)

Trading Expectations (TSM) For The Trading Day Of Monday 17th

For the trading day on Monday, 17th we expect Taiwan Semiconductor Manufacturing Company Ltd to open at $105.77, and during the day (based on 14 day Average True Range), to move between $102.59 and $107.69, which gives a possible trading interval of +/-$2.55 (+/-2.42%) 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 4.85% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $106.80 (1.58%) than the support at $103.21 (1.84%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Taiwan Semiconductor Manufacturing Company Ltd stock A Buy?

Several short-term signals, along with a general good trend, are positive and 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.