Don't Ignore This Chart!

A Troika of Bullish Signals for Taiwan Semi


Taiwan Semiconductor is breaking out of a bullish pattern with good volume and the stock is showing relative strength. The price chart shows a cup-with-handle forming from December to mid-February. This is a bullish continuation pattern that was popularized by William O'Neil. There are three resistance levels marked with the recent highs and the stock is on the verge of breaking the third. A breakout would signal a continuation of the advance from mid-January to mid-February. The first indicator window shows upside volume (green) outpacing downside volume (red) over the past month. This shows strong buying pressure. The bottom window shows the price relative in an uptrend with a new high in February. This means TSM is outperforming SPY and showing relative strength. Overall, there are at least three bullish forces at work on this chart and this favors higher prices. 

Thanks for tuning in and have a good day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus