(TSM) Taiwan Semiconductor Set for a Bullish Surge!Technical Analysis: Taiwan Semiconductor (TSM) – 15-Minute Timeframe (Long Trade)
We entered a long trade on Taiwan Semiconductor (TSM) at 204.25 after a clear bullish signal. The trade is currently in progress, and we are waiting for the profit targets to be hit.
Key Levels
Entry: 204.25 – The long position was initiated here following a strong upward signal.
Stop-Loss (SL): 195.45 – Positioned below support to manage risk and protect against downside movement.
Take Profit 1 (TP1): 215.12 – The first target we are eyeing as the bullish momentum unfolds.
Take Profit 2 (TP2): 232.71 – A further upside target, marking a significant rally if the momentum continues.
Take Profit 3 (TP3): 250.30 – A potential target if the bullish trend remains strong.
Take Profit 4 (TP4): 261.17 – The ultimate target, signaling a substantial upside move.
Trend Analysis
The price is well above the Risological Dotted trendline, indicating strong bullish momentum. The upward movement is supported by a solid breakout, and we are now watching for the targets to be met.
The long trade on TSM looks promising, with a clear entry at 204.25. We are now monitoring the price as it approaches the first target at 215.12, expecting further upside momentum.
Taiwan
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TSM Taiwan Semiconductor Options Ahead of EarningsIf you haven`t bought TSM before it skyrocketed:
Now analyzing the options chain and the chart patterns of TSM Taiwan Semiconductor prior to the earnings report this week,
I would consider purchasing the 190usd strike price Calls with
an expiration date of 2024-9-20,
for a premium of approximately $12.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
TSM Taiwan Semiconductor Options Ahead of EarningsIf you haven`t sold TSM here:
Then analyzing the options chain and the chart patterns of TSM Taiwan Semiconductor prior to the earnings report this week,
I would consider purchasing the 100usd strike price at the money Calls with
an expiration date of 2024-9-20,
for a premium of approximately $11.45.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Trade Like A Sniper - Episode 48 - HKDTWD - (18th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions.
A couple of things to note:
- I cannot see news events.
- I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range.
- I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks
In this session I will be analyzing HKDTWD, starting from the 3-Month chart.
If you want to learn more, check out my profile.
Trade Like A Sniper - Episode 47 - USDTWD - (18th June 2024)This video is part of a video series where I backtest a specific asset using the TradingView Replay function, and perform a top-down analysis using ICT's Concepts in order to frame ONE high-probability setup. I choose a random point of time to replay, and begin to work my way down the timeframes. Trading like a sniper is not about entries with no drawdown. It is about careful planning, discipline, and taking your shot at the right time in the best of conditions.
A couple of things to note:
- I cannot see news events.
- I cannot change timeframes without affecting my bias due to higher-timeframe candles revealing its entire range.
- I cannot go to a very low timeframe due to the limit in amount of replayed candlesticks
In this session I will be analyzing USDTWD, starting from the 4-Month chart.
If you want to learn more, check out my profile.
TSM: After Downgrading The Outlook, What To Expect?
Trend
- On the weekly chart: Clearly showing an uptrend.
- The uptrend channel has extended 100% and is expected to return to the middle line at least, with a chance of reaching the lower band of the original channel.
100% Symmetrical Projection: Uptrend “N” Patterns
- A 100% Symmetrical Projection of the initial swing (from A to B) and then projected from C. As a result, D was our initial target price.
- Without a symmetrical retracement from D to E, there's a resistance-turn-support at level D, and the price continued to rise. The target price was adjusted another 100% higher to D' due to the very strong momentum.
- However, the price failed to reach D' and fell below level D at $135, indicating that the momentum has dissipated. Additionally, on the daily chart, there's a support-turn-resistance to reinforce the level's importance.
- What's next?
The price may retrace 100% of the "extra force" of the blue box; or
The price is likely to fulfill the original symmetrical retracement from D to E.
N Pattern’s Target Price & Fibonacci Price Cluster
- The 0.5 Fibonacci Retracement of the entire swing from A to HH perfectly aligns with level E, which can be seen as one of the current target prices on the short side.
- The 0.618 Fibonacci Retracement of the more recent swing from C to HH is close to the low of the returning blue box.
- Both levels and the previous key resistance level at B form a tight zone, likely to be a significant support area (the gray area).
Conclusion
- After breaking below the key level at $135, TSM is expected to retrace to the tight range between $109 and $112.7.
- In other words, if you’re considering to buy more and invest in TSM, this tight support area presents an opportune entry point.
Not Financial Advice
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
#TAI/USDT#TAI
The price is moving in a descending triangle on the 12-hour frame
We have a green support area at 0.03650
Now we have a nice breakout coming up
Our RSI indicator has a trend that is about to break to the upside
Entry price is 0.04054
The first target is 0.04436
The second target is 0.04850
The third goal is 0.05333
TAIWAN moves into wave iii of 3 and opens up to more upside!The TAIWAN market index(TWSE) is spotted moving up in wave iii of wave 3 structure.
The last impulse in the index(wave i of wave 3) was seen during the months of Nov-dec and then came a subsequent correction of the same that retraced 38.2% of the rise.
Now that the corrective wave ii is done, the index has started the rise again in wave iii.
Wave iii of 3 can be projected moving towards the 19-19.1K zone.
Wave 3 itself however, could be projected going much higher into the 20.2K-20.5K zone.
The comeback of the 1997 Asian Financial Crisis in near futureAsia will be shaken to the core once again, but that's good news for China, first, for CCP it is an opportunity to step in and replace dollar with yuan, making countries in Asian region to submit to the Yuan power, de-dollarization of Asia. The first crisis was triggered by the handover of HongKong to China, this time it will be takeover of Taiwan by China.
Fractals on USDTHB charts strongly suggests everything that is said above.
TSM - Taiwan, Your Semiconductor Long HedgeAt present, the US equities markets are at a critical inflection point, especially tech.
We're still in the bear side of a correction in an extremely major bull market impulse fuelled by Party Central's COVID stimulus programs, and yet flirting with all time highs.
Sometimes markets top without a blow off. Nasdaq's daily chart, above, shows price raided the 16,000 psychological level and the January 2022 pivot that ended the bull market.
This is really significant in and of itself, but even more significant in that the 3% rejection thus far indicates that tech *may* have truly topped already.
In my recent call on NVIDIA, some people correctly criticized that I have the problem of being bearish when a stock is clearly bullish.
I have thought about this quite a bit and think the criticism is fair.
With NVIDIA, I believe the stock has either topped or will top before/at $500 in a coming impulse. However, if one had have just gone long on the dips from low $400s to the $480 mark, they could have financed a freeroll "Short God From The Top" dream trade with potentially huge upside.
And that brings us to Taiwan Semiconductor, a company that I believe is a clear long on all time frames and has several significant advantages:
1. It's Taiwan's gemstone and thus highly relevant to the geopolitical concerns I will outline below
2. Producer of much of the world's most advanced chips
3. Market cap still under $500 billion (Thus, room to 2 or 3x in the future)
4. Is not a component of the Nasdaq, the SPX, the Dow, or the Russell, and thus can impulse long even if the equities market corrects
5. Accounts for only 3.4% of the index the SOXX/SOXL/SOXS ETFs underlie, and thus can impulse long even if the semiconductor industry corrects sharply
6. Washington is banning NVIDIA and ASML from selling to China, but never mentions TSM
7. If TSM pulls out the "AI" marketing card with a new offering, watch out for fire.
In previous posts I have mentioned that the Chinese Communist Party is about to fall. While people may find that unbelievable or too good to be true, it's worth noting that when the USSR was brought down by Gorbachev and friends on Christmas Day 1992, nobody believed it was possible then either.
Those of us who are old enough to remember know you woke up one day to see it all over the news and nobody knew how it would happen.
Many entities are considering how to take control of China and its 5,000 year old culture, history, natural resources, and land when the Party falls.
The International Rules Based Order wants China for its own reasons, and the reason "Washington" has made itself so close to Taiwan isn't because Xi Jinping intends to invade Taiwan (The CCP is too weak after so many people died from Wuhan Pneumonia), but because the IRBO intends to use The Republic of China to replace the Communist Party for its own ends.
The ultimate purpose is to install genuine communism (note the CCP only still practices socialism according to its own dogma) worldwide via panopticon social credit systems and central bank digital currencies.
If you want a future you and your family can live in, you want our traditions, imparted by God, and not this junk imparted by Karl Marx and the specters that belied him.
I've mentioned before that Xi, an ostensible Chinese nationalist, has the option of weaponizing the 24-year persecution and organ harvesting genocide against the 100 million practitioners of the Falun Gong/Falun Dafa spiritual cultivation practice by the faction of his predecessor Jiang Zemin and the CCP in order to ensnare the IRBO and its banking cartel.
However, all of the world's critical pieces (Yellen, Musk, Kissinger, Dimon) visiting Beijing "for talks" combining with a recent significant strengthening of the yuan and a potential recovery of China tech stocks indicates that the IRBO is now onside with the Xi administration.
Which means that Xi may have sold out China and the future in a Faustian Pact with the IRBO in order to maintain his power, because he's too much of an idiot to throw away the CCP, return to China's 5,000 years of dynasties, and enter the future.
Either way, once there's some kind of news cycle about "Taiwan" (just go look at all the war clamoring that appeared this month in The Economist et al), TSM can moon no matter what the rest of the equities market does, and counts as an excellent long hedge during catastrophe.
I can only say that if you go long, especially significantly long, on anything right now, you really ought to be hedging volatility long while the VIX is maintaining a 13-handle.
So here's the trade.
TSM dumped some 6% on earnings under $98, which is a hell of a dip to buy.
It's a dip to buy because daily price action on the way up stopped just short of the curiously-numbered $111.11 (the Chinese are extremely numerological/superstitious), which naturally makes this figure a target for a retrace
It's only that on the hourly,
TSM doesn't show any signs of having bottomed beyond not making a lower low on the first day.
But with the biggest FOMC of the year on Wednesday, July 26 (big hike possible, next meeting not until Q3 end September 20), longing today may have been too early.
But not too early by much. Arguably only 3%. The most bullish continuation for TSM would be to maintain a "higher low" formation, protecting the wick of the June low at $94.25.
Upside targets are immediately $113+ (Masonry, roar?) and $130 (Masonry, rawr!) if bearish.
If all things Taiwan become memefied like artificial intelligence did because of what's going on in China, then there's little to stop TSM from becoming a $1 Trillion market cap company like NVIDIA et al, which would actually mean upside over $200 is in the cards through the 2024 Presidential Election.
But mankind's best laid plans are merely those of mice. This race is like bacteria and this planet is little more than a speck of dust when viewed from higher places in the enormous and boundless Cosmos we currently sit in.
What the Cosmos looks at is a race, a planet, and an individual's moral standard and spiritual realm.
Thus, the more calamity is on deck the more critical it is to take good care of your family and friends and use the time that we all have left before the world changes forever to make up for the things from the past that have been done wrong, when they should have been done well.
Take good care of yourselves.
BDI - smth nasty is under the hood Baltic Dry Index points to smth ugly in global trade to happen. I count move from 2008 top to 2016 bottom as wave circle A. Move from 2016 trough to 2021 peak as wave circle B. Wave circle C is ahead. Assuming C=A extension the bottom should be expected somewhere in the 140-200 range, almost 80-90% drop from the current levels.
We see S&P500 is very bullish with recent tech innovations. TSMC to up Arizona investment to $40 billion with second semiconductor chip plant
The investment by TSMC is one of the largest foreign investments in U.S. history, and the largest in the state of Arizona.
Semiconductor chips are used in everything from computers and smartphones to cars, microwaves and health-care devices. Once the plants open, they will produce enough chips to meet the U.S. annual demand.
The announcement comes in wake of the passage of the CHIPS and Science Act which was signed into law in early August.
President Joe Biden is joining the founder of Taiwan Semiconductor Manufacturing
Co. on Tuesday to announce the opening of the company’s second chip plant in Arizona, raising its investment in the state from $12 billion to $40 billion.
The company will also announce it will be producing more technically advanced chips than originally proposed. The investment by TSMC is one of the largest foreign investments in U.S. history, and the biggest in the state of Arizona.
Semiconductor chips are used in everything from computers and smartphones to cars, microwaves and health-care devices. The Covid-19 pandemic shined a bright light on U.S. dependence on Chinese manufacturers as lockdowns led to a global shortage of the high-tech chips.
TSM | Very Overbought Buffett Pick | SHORTTaiwan Semiconductor Manufacturing Company Limited manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors. The company also offers customer support, account management, and engineering services, as well as manufactures masks. Its products are used in mobile devices, high performance computing, automotive electronics, and internet of things markets. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
The strong rebounce of bitcoinThis should be the strongest and final rebound of bitcoin as it going further down. My prediction will be 16k before the bottom is really bottom.
We already hit 18k, and it immediately rebound to 19k, which apparently is a cat market - dead cat bounce.
Still the economy is not stable:-
1. The Ukraine war is escalating or there are no way out still, the USA still sponsoring Ukraine with millions of support. And Russia had determine to turn off the gas pipelines.
2. The China lock down or so call communism close down policy. Is rather fishy and insane or not making any sense. To just selfishly contain economy within China and remain exporting goods to outside. This mean that, they can make your money and you can not even make theirs.
3. The economy of whole world is frozen by covid-19 for 2 years and just seeing it start to melt. The melting process take longer than expected. People do not want to travel due to safety or rigid process. And yet some country do not want you to visit them. It's just not going back to pre-covid era.
What Would Happen to Henry Hub NG if China Attacks Taiwan?Since last week the media has published videos and Chinese politicians' statements about the Chinese military drills near Taiwan. Taiwan has also conducted military exercises and preparatory work with the civilian population in the event of an attack. On August 3, the NYT, quoting Chinese state media, published an article about the following Chinese military drills scheduled on August 4 and a place of exercises. Chinese media offered five swaths of the sea surrounding Taiwan. If true, it can be a hostile act, possibly igniting conflict between China and unrecognized Taiwan. Both countries are essential for the world economy, meaning the conflict would affect markets. I hope it will not happen . However, this risk urged me to start a series of posts ' What would happen to asset_name if China attacks Taiwan? '
A brief: China is the second economy in the world by nominal GDP. China is the main trading party for the US, Europe, and many other countries and regions. The country is also a giant gas consumer and LNG importer. According to the EIA, the US was the fourth LNG supplier in China in 2021.
Henry Hub natural gas is a local benchmark. However, its price partly depends on the US LNG trade achievements and obstacles.
In case of a conflict, it would halt LNG export to Taiwan. I estimate Henry Hub participants would also wait for sanctions on Chinese banks or even prohibition of gas trade with China. These would drive expectations of short-term oversupply in the US local market resulting in a sharp price drop of natural gas in America.
In the end, some LNG exporters would change their export from China and Taiwan to other Asian countries, e.g., South Korea, Japan, and India. Other LNG sellers would divert shipments to Europe, suffering from high continent natural gas prices , bringing relief to Europe in terms of volumes and price.
The main shock could happen later. Possible export and import prohibitions between China and the US with Allies would bring manufacturing decline, pushing gas demand lower and cutting its price. It would get a more sustained bearish effect on Henry Hub prices than temporary shipment redirection.
With the technical analysis help, I estimate a first bearish move could put prices down to a support level of $6.4/MMBtu . Then, in case of sanctions, it would go down to the next support of $5.5/MMBtu . It is hard to forecast how long Taiwan can fight and what sanctions will be imposed. I doubt that sensitive restrictions would be imposed during the first days. I also doubt that the US will impose harsh O&G sanctions if China takes over Taiwan quickly. I expect it could happen a month after the start of the conflict. Breaking $5.5/MMBtu through, it would drop to the last winter's $4/MMBtu .
Put options are the best instruments for shorting HH on the potential conflict. For the first target of $6.4/MMBtu , the option with the corresponding strike and expiration in September could suit well. For the following targets of $5.5/MMBtu and $4/MMBtu , I suppose corresponding strikes with October and November expiration.
For futures traders, I guess a stop-loss is $8.5/MMBtu . The stop-loss is ugly and huge in today's Henry Hub Volatility environment. Timing for the trade matters much. I believe that options with an end-of-month expiration date could be good. The position holding period is 7 days to next Thursday. If the bad doesn't happen, it is better to close the long put or futures short position. However, we do not know the date. Solely China knows the exact date if the plan exists. The risk could realize during the next 7 days or be postponed to next month or even later. If the risk realizes later, I expect the same effect on the market, and only target adjustments could be needed.
I wish you peace!
Thank you for your reading, and have profitable trading! Comment your thoughts!
What would happen to S&P 500 if China attacks Taiwan?Since last week the media has published videos and Chinese politicians' statements about the Chinese military drills near Taiwan. Taiwan has also conducted military exercises and preparatory work with the civilian population in the event of an attack. On August 3, the NYT, quoting Chinese state media, published an article about the following Chinese military drills scheduled on August 4 and a place of exercises. Chinese media offered five swaths of the sea surrounding Taiwan. If true, it can be a hostile act, possibly igniting conflict between China and unrecognized Taiwan. Both countries are essential for the world economy, meaning the conflict would affect markets. I hope it will not happen . However, this risk urged me to start a series of posts ' What would happen to asset_name if China attacks Taiwan? '
A brief : China is the second economy in the world by nominal GDP. China is the main trading party for the US, Europe, and many other countries and regions.
Taiwan is the heart of semiconductor manufacturing for all industries around the world.
Bearing this in mind, recall that S&P 500 is a world barometer of economic health or a barometer of the capital markets financial system. The index has a diverse base of constituents representing the American economy. Companies from the index have business with China: manufacturing, trade, intangible assets, and financial transactions. Besides, Taiwan is the leading supplier for many American manufacturing companies working in consumer durables, communication, electronic technology, and producer manufacturing. The conflict would directly affect negatively on most American companies. It could slow economic growth (I think it would be a recession) and create much bigger supply problems than the 2021 supply chain crisis. Companies that heavily relied on Taiwan semiconductors would experience issues first. For instance, it could be Apple , Tesla , and AMD .
We do not know what kind of sanctions the US and its allies will impose on China. The next dropping wave of the index could happen if it is the anti-Russian-style sanctions. China is not only the biggest exporter of goods but the most prominent importer of commodities. Heavily relied on fossil fuels. For example, the US government may prohibit American oil and gas exports to China, causing damage to American O&G companies.
Regarding retail and non-durable, they also depend on imports from China. So I believe prices of utility stocks could be steady in a storm. I also thought about Air & Defence, but it could have heavily relied on Taiwanese and Chinese imports. Perhaps a few companies are not dependent on Asian supplies in the sector, but the whole industry is vulnerable. I do not want to bury deep into fundamentals cause the article is about the index.
Let's look at the chart. I estimate the potential conflict would hurt the index dramatically. The first target is 3700 ; semiconductor-dependent companies would drive the index drop by more than 10%. The following support is on 3200 . The best instruments for the trading idea are put options with the corresponding strikes. For futures traders, I suppose 4200 is a stop-loss. Timing for the trade matters much. I believe that options with an end-of-month expiration date could be good. The position holding period is 7 days to next Thursday. However, we do not know the date. Solely China knows the exact date if the plan exists. The risk could realize during the next 7 days or be postponed to next month or even later.
Here I will pause because it is hard to forecast how long Taiwan can fight and what sanctions will be imposed. I doubt that sensitive restrictions would be imposed during the first days. I also doubt that the US will impose harsh sectoral sanctions if China takes over Taiwan quickly.
I wish you peace!
Thank you for your reading, and have profitable trading! Comment your thoughts!
What Would Happen to Gold if China Attacks Taiwan?Since last week the media has published videos and Chinese politicians' statements about the Chinese military drills near Taiwan. Taiwan has also conducted military exercises and preparatory work with the civilian population in the event of an attack. On August 3, the NYT, quoting Chinese state media, published an article about the following Chinese military drills scheduled on August 4 and a place of exercises. Chinese media offered five swaths of the sea surrounding Taiwan. If true, it can be a hostile act, possibly igniting conflict between China and unrecognized Taiwan. Both countries are essential for the world economy, meaning the conflict would affect markets. I hope it will not happen . However, this risk urged me to start a series of posts 'What would happen to asset_name if China attacks Taiwan?'
A brief: China is the second economy in the world by nominal GDP. China is the top producer and buyer of gold in the world. It is the sixth largest gold holder, owning 1948 MT at the end of Q1 2022.
A possible conflict would drive the gold price to break the last resistance of $1790/oz t and move to the middle of the May-June range to $1840/oz t in the short term. The longer the conflict exists, the more sanctions I expect. I can't predict how long Taiwan can fight and what sanctions will be imposed. If the conflict lasts several months, developed nations could prohibit Chinese gold, as they have done with Russian gold. You could see it as a bullish sign. However, China could probit gold imports. The action will decrease demand and weigh on the price.
The position holding period is 7 days to next Thursday. Unfortunately, I do not see a good level for stop-loss. If the bad doesn't happen, it is better to close the long. However, we do not know the date. Solely China knows the exact date if the plan exists. The risk could realize during the next 7 days or be postponed to next month or even later. If the risk realizes later, I expect the same effect on the gold price, and only target adjustments could be needed.
I wish you peace!
Thank you for your reading, and have profitable trading! Comment your thoughts!
What Would Happen to Bitcoin if China Attacks Taiwan?Since last week the media has published videos and Chinese politicians' statements about the Chinese military drills near Taiwan. Taiwan has also conducted military exercises and preparatory work with the civilian population in the event of an attack. On August 3, the NYT, quoting Chinese state media, published an article about the following Chinese military drills scheduled on August 4 and a place of exercises. Chinese media offered five swaths of the sea surrounding Taiwan. If true, it can be a hostile act, possibly igniting conflict between China and unrecognized Taiwan. Both countries are essential for the world economy, meaning the conflict would affect markets. I hope it will not happen . However, this risk urged me to start a series of posts ' What would happen to asset_name if China attacks Taiwan? '
A brief: China is the second economy in the world by nominal GDP. Taiwan is the heart of semiconductor manufacturing for all industries across the globe.
In my opinion, Bitcoin today is a risk appetite indicator, which regularly mimics or outpaces changes in the notable stock indexes, e.g., S&P 500 and Nasdaq Composite. The risk realization would trigger risk aversion pushing the BTC price to the last local support level of $19000. The stop-loss is the previous local high of $24500. However, the level can slightly differ from the spot price. The main risk is conflict duration. The longer the conflict exists, the more sanctions I expect. I can't predict how long Taiwan can fight and what sanctions will be imposed. I doubt that sensitive restrictions would be imposed during the first days. I also doubt that the US will impose harsh sectoral sanctions if China takes over Taiwan quickly. If the conflict would last several months, I suppose bitcoin could drop significantly to $14000. The position holding period is 7 days to next Thursday. If the bad doesn't happen, it is better to close the short position. However, we do not know the date. Solely China knows the exact date if the plan exists. The risk could realize during the next 7 days or be postponed to next month or even later. If the risk realizes later, I expect the same effect on the BTC, and only target adjustments could be needed.
Additionally, the potential conflict would seriously weigh on crypto mining activity because of semiconductor manufacturing termination in Taiwan. A probable semiconductors' deficit leads to the rise of GPU's price in the midterm, elevating mining costs. Miners would have to adapt to the new reality.
I wish you peace!
Thank you for your reading, and have profitable trading! Comment your thoughts!