TSMC - has now come across resistance after the earnings surge. Could move sideways until a push higher

Taking a look at Taiwan Semiconductor after AI companies and semiconductor stocks are continuing the AI frenzy, with most likely what we can is the beginning of a new bull market. Currently, its shares are trading at around $128.57 a share. Looking at the chart from a technical viewpoint, we can see that the stock underwent a similar rise to other chip stocks following optimism surrounding Nvidia. The stock rose 35% in 2023, up 25% year-to-date. The average analyst forecast for 2024 is around $141 a share, which indicates that there is room for another rise of 10% from current levels. The low forecast is around $125 a share, which is about 2.7% towards the downside from current levels. So analysts are fairly positive on this stock going into spring and months to follow. We can see resistance was found at $135.12, which was followed by some profit-taking as the RSI peaked at 78 (overbought). Perhaps we are now witnessing some consolidation before further price determination. A break above $135.12 would then allow investors to eye up the all-time highs of $142-$145. A move towards all-time highs would relate to the potential average 10% gain projection by Wall Street analysts. Towards the downside, key support here now is the level of $122.94. A dip below this level may see a further retracement towards $112-$113, as this would be the next point of focus. Over to the technical indicators, the MACD is positive and rising on the weekly chart. The RSI is also positive as it reads 70, however, it is still trading within overbought conditions. Therefore, it cannot be ruled out that the stock may move sideways for a period of time or even drift a little lower before any clear price movement. Similar to that of Nvidia and AMD.

Minipip’s Key Note:

*TSMC is the manufacturer and supplier of chips to the likes of Nvidia, AMD, Apple, Broadcom, ARM and Marvell*