Down almost 4% following Trump's comments

TSMC is selling off following comments from Donald Trump and ASML earnings dampening the sentiment for its semiconductor peers. Trump commented that Taiwan should pay the US for defence, creating possible doubts over the US’s commitment to defend Taiwan if Trump was to become president. The stock is currently down almost 4% in the pre-market session with its share price now trading at around $179.52 a share. Looking at the daily chart ahead of TSMC’s earnings report tomorrow, we can see it’s approaching the trendline support. The support along the trendline reads around $174. This trendline has been intact since the retracement in April, therefore, a break below may instigate yet another retracement in the near term. However, the stock does also have support around $167-$168, hence, a break below here would confirm that a deeper retracement is underway. Caution heading into earnings should remain as the MACD has just turned negative and the RSI has fallen sharply, sitting in neutral territory. It would be unreasonable to point out any resistance levels unless there are signs of consolidation above the trendline following the earnings. In that scenario, the attention may once again turn to the all-time high of $194.