Stock of the Day: TSMC

In today’s stock of the day, let’s take a closer look at Taiwan Semiconductor Manufacturing Company (TSMC), one of the most important players in the global tech and semiconductor industry. The chart of TSMC currently shows a very familiar and trustworthy technical pattern — an ascending triangle, a structure that is both technically reliable and historically bullish when confirmed.

The ascending triangle is characterized by a horizontal resistance on top and a rising dynamic support line below, forming a tightening price range as buyers gradually push the price higher with each new swing low. This setup typically occurs within an ongoing uptrend, serving as a continuation pattern that signals accumulation before the next breakout. On TSMC’s chart, the green horizontal resistance represents a ceiling that the price has tested multiple times, while the blue rising trendline shows that demand is consistently building. Each bounce from this support suggests that buyers are getting stronger, preparing for a potential surge through the resistance.

From a trading perspective, the strategy here is clear. As long as the blue support line holds, sentiment remains constructively bullish, and the pattern continues to point toward an eventual breakout to the upside. A daily close above the green resistance would confirm the ascending triangle breakout, generating a strong long-term buy signal and likely opening the path toward new highs. On the flip side, if the price closes below the blue dynamic support, that would invalidate the pattern, triggering a sell signal and suggesting a deeper correction.

For now, however, the structure remains intact, and momentum favors the bulls. As long as buyers continue defending support, TSMC looks ready to extend its uptrend in the sessions ahead.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-tsmc