My Watchlist [80]: TSM... Cruising towards 174.08?

Hi everyone! I’ll be looking at another semiconductor stock:

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)

TSM is forming higher highs and higher lows. It recently made new ATHs above 145 but has since come back below this level. I have identified 141.99 as a key pivot to reclaim for the next leg to occur. This was where prior ATHs rejected, and also a recent rejection zone (rejected even during Friday’s session).

However, hidden bullish divergence has started to form on the weekly, which is a good sign for bulls. It is also trading in an ascending broadening wedge expansion pattern, similar to other semiconductor stocks such as AMD and MRVL.

On the daily chart, the expansion pattern is more visible. I note that it is forming a hidden bullish divergence on the daily as well. We also turned 135.17 (prior resistance) into support, which has provided it with room towards 141.99 which we duly rejected. Once TSM turns 141.99 into support, it can then make its way towards the 1.618 Fib extension at 174.08 [assuming we use 133.03 (latest swing low) and 158.40 (latest swing high)]. I am expecting an S/R flip to occur at 158.40 after we hit this 174.08 target, which would be a good entry point for the next leg up.

Sentiment: BUY

Summary (with Price Targets - NFA):

Ascending broadening wedge expansion pattern with a measured move towards 174.08.
Breaking above 141.99 and turning it into support will be key for the next leg up. However, accumulation in other semiconductor names suggest a sector-wide rally is coming, regardless of what the broader market does.
Investors can accumulate at current levels or on a retest of 135.17, if we get it.

Alright, that’s all for this newsletter. Till next time!

$VanEck Semiconductor ETF(SMH)$ $Taiwan Semiconductor Manufacturing(TSM)$ $Advanced Micro Devices(AMD)$ $NVIDIA Corp(NVDA)$ $SUPER MICRO COMPUTER INC(SMCI)$

@TigerEvents @TigerStars @TigerWire @CaptainTiger @MillionaireTiger

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My Watchlist [80]: TSM... Cruising towards 174.08?

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