When is the best time to invest TSMC? 25.01.20
Hello, this is Greedy All-Day.
Today’s analysis focuses on TSMC (Taiwan Semiconductor Manufacturing Company).
Weekly Chart Analysis
Chart:
Looking at the weekly chart, TSMC has been in a consistent uptrend since 2008. The chart shows a steady upward channel with higher lows and no significant breaks below the trendline.
Key Observations:
Since 2008, TSMC has not experienced any dramatic corrections.
The largest correction was approximately 50%, while most other corrections were around 30%.
The overall trend remains strongly bullish.
Analyzing TSMC Using Pitchfork
Chart:
Using the pitchfork tool, the red median line indicates an overbought zone. In contrast, the blue lower zone signals an ideal entry point for long-term investors.
Key Insights:
While the price is still climbing with higher lows, the 15-year-long uptrend makes a trendline break unlikely in the near term.
If a correction occurs, the blue zone around $108 could provide an excellent buying opportunity.
This level aligns with the lower boundary of the yellow supply zone, suggesting it is a strong support area.
A decline to $108 would represent a 50% correction from the current price, a level where TSMC has historically rebounded.
Current Daily Chart Analysis
Chart:
Currently, TSMC is trading near its all-time high, making the suggestion of a 50% correction seem unrealistic. But let’s take a step back and think critically:
What is your goal when buying at an all-time high?
Are you setting a price target for the stock?
Or are you focused on your personal profit target?
If it were me, I wouldn’t consider this the time to buy. Instead, I would wait for a correction. If I believe TSMC is a great company, I would revisit the potential buy zone I mentioned earlier, combining it with my assessment of whether the correction is deep enough to justify entry.
Conclusion
Upside Potential: TSMC could go higher, but at this point, it likely won’t be my gain.
Current Risk: The stock is at an all-time high, and there’s no historical reference for what lies beyond.
Recommended Strategy: Avoid buying at current levels. Instead, wait for a correction. Historically, TSMC has rebounded strongly from pullbacks, and the same could happen again.
Final Thought: History repeats itself. Wait for the right moment and be prepared.
Today’s analysis focuses on TSMC (Taiwan Semiconductor Manufacturing Company).
Weekly Chart Analysis
Chart:
Looking at the weekly chart, TSMC has been in a consistent uptrend since 2008. The chart shows a steady upward channel with higher lows and no significant breaks below the trendline.
Key Observations:
Since 2008, TSMC has not experienced any dramatic corrections.
The largest correction was approximately 50%, while most other corrections were around 30%.
The overall trend remains strongly bullish.
Analyzing TSMC Using Pitchfork
Chart:
Using the pitchfork tool, the red median line indicates an overbought zone. In contrast, the blue lower zone signals an ideal entry point for long-term investors.
Key Insights:
While the price is still climbing with higher lows, the 15-year-long uptrend makes a trendline break unlikely in the near term.
If a correction occurs, the blue zone around $108 could provide an excellent buying opportunity.
This level aligns with the lower boundary of the yellow supply zone, suggesting it is a strong support area.
A decline to $108 would represent a 50% correction from the current price, a level where TSMC has historically rebounded.
Current Daily Chart Analysis
Chart:
Currently, TSMC is trading near its all-time high, making the suggestion of a 50% correction seem unrealistic. But let’s take a step back and think critically:
What is your goal when buying at an all-time high?
Are you setting a price target for the stock?
Or are you focused on your personal profit target?
If it were me, I wouldn’t consider this the time to buy. Instead, I would wait for a correction. If I believe TSMC is a great company, I would revisit the potential buy zone I mentioned earlier, combining it with my assessment of whether the correction is deep enough to justify entry.
Conclusion
Upside Potential: TSMC could go higher, but at this point, it likely won’t be my gain.
Current Risk: The stock is at an all-time high, and there’s no historical reference for what lies beyond.
Recommended Strategy: Avoid buying at current levels. Instead, wait for a correction. Historically, TSMC has rebounded strongly from pullbacks, and the same could happen again.
Final Thought: History repeats itself. Wait for the right moment and be prepared.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.