TSM stock: buy or sell?
Dec 1st, 2020
TSM stock brief
- Taiwan Semiconductor skyrocketed a 3.96% after reaching new all-time highs on Tuesday
- Taiwan Semiconductor Manufacturing Company Limited manufactures and sells integrated circuits and semiconductors. It also offers customer service, account management, and engineering services.
Should I buy Taiwan Semiconductor stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $TSM stock a buy?
Currently, Taiwan Semiconductor stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it rises quickly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Taiwan Semiconductor can break to all-time highs any time soon, as it only needs to rise a 3.41%. Setup your buy order at $104.30 if you want to trade with this strategy. The stop loss would be placed at $93.87
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$104.30||$93.87||10.00%|
Should I sell Taiwan Semiconductor stock?
Do you know when is it time to sell Taiwan Semiconductor?. Similarly to when we have to buy shares, choosing when is appropiate time to sell is not a whimsical decision, and we must use our own trading strategy. We like very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies should not be used for selling short $TSM stock
A golden rule is that you must never keep an operation that results in greater losses than those expected by the time of the buy. When to sell your stock must always be determined by the stop-loss (automatic or manual)
Is it time to sell Taiwan Semiconductor stock?
Currently, Taiwan Semiconductor stock doesn't match any of our preferred sell setups, so if you own Taiwan Semiconductor shares and your operation is in profit probably is not time to sell now
Taiwan Semiconductor ratings
We don't have any rating published in the last 30 days for Taiwan Semiconductor
Taiwan Semiconductor stock analysis
Since last March, Taiwan Semiconductor has been drawing an uptrend that so far marked an amazing 139.23%. The price action shows higher highs and higher lows, and along the way provided some entry points for those who wanted to invest. Latest pullback was last October, when price bounced at $83.16. In mid-November, Taiwan Semiconductor broke out above its last top ($91.27) giving a good buy point that resulted in a 10.51% gain
$TSM at new All-time Highs
On Tuesday, Taiwan Semiconductor reached all-time highs (ATH) again at $104.30. Previous highs were in mid-November
Supports and resistances
Price is at highs and there are not upper resistance levels.
The current support levels are:
The price is moving very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 on November 17 after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Tuesday was 65.47. Taiwan Semiconductor price climbed a 1.60% since RSI lost the overbought zone
Taiwan Semiconductor stock price history
Taiwan Semiconductor started trading on Oct 9th, 1997 priced at $3.06 per share1. Since then, TSM stock has risen by 3,196.08%, with an average of 138.96% per year. An investment of thousand dollars on Oct 1997 would worth $32,960.78 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Taiwan Semiconductor stock
Nobody knows how much a share will be priced in the future. Banks and financial organisations issue their analysis predicting how a particular stock will performance in the future.
The following table shows the price forecasts released by financial institutions for the last 30 days. Again, these predictions are not direct recommendations for small investors and must not be trusted blindly.
We don't have any target price published in the previous 30 days for Taiwan Semiconductor.
Earnings and financials
Taiwan Semiconductor ($TSM) had the quarterly investors call and presented the report last October. TSM presented earnings of $0.90 per share on sales of $12.1 billion. The Wall St estimate was $0.77 per share on revenue of $11.5 billion.Compared to the same quarter last year, EPS was $0.62, so reported EPS means a increase of 45.16%. Sales skyrocketed a 21.63% on an annualized basis in the , from $2.9T to $3.6T last quarter.
TSM ($TSM) will host the quarterly earnings call mid next January.
Taiwan Semiconductor competitors
Taiwan Semiconductor is part of the Technology sector and the Semiconductors industry, which contain 47 industry peers.
Taiwan Semiconductor main competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Taiwan Semiconductor ($TSM)||$419.8B|
|Texas Instruments ($TXN)||$145.5B||Neutral||0|
1 In the last 30 days.
Taiwan Semiconductor performance
To better understand Taiwan Semiconductor performance you must compare its gains with other related stocks in same sector or industry.. For Taiwan Semiconductor, the benchmark is made against NVIDIA, Intel, Qualcomm, Broadcom, Texas Instruments and AMD.
|Taiwan Semiconductor ($TSM)||19.20%||24.60%||92.50%|
|Texas Instruments ($TXN)||11.60%||12.40%||31.20%|
Important:The thoughts written in this article are personal and not recommendations for you to buy or sell stocks. The author of this report does not know the specific positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for educative purposes only
|Tuesday, December 1st, 2020|
|Day range||$98.52 - $104.3|
|Average true range||$3.45|
|50d mov avg||$88.34|
|100d mov avg||$82.70|
|200d mov avg||$67.37|
|Earnings date||January 14th, 2021|