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Taiwan Semiconductor's Big Investment Great for the Stock

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NVIDIA gets all the press, and deservedly so. Let’s not forget the world’s largest dedicated independent pure-play semiconductor foundry, Taiwan Semiconductor (TSM - Free Report) ). The company announced its investment in the US is going to increase to at least $165 billion. This investment will go towards building 5 facilities in Arizona.

That great news didn’t help the stock buck the broad selling in the market Monday. As NVDA and other tech stocks came under pressure, there was nowhere for TSM to go but down. Another 4% to the downside for the stock, taking it to $172.97 into the close. It’s moving away from its 200-day moving average in the wrong direction. RSI is oversold down here at 29. This is a stock that was trading above $220 on January 24th.

Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.

Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.

Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.

Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.

Dave Bartosiak's technical analysis approach adds depth to our understanding Taiwan Semiconductor’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.


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