The sell signal fails to confirm
Taiwan Semiconductor: sell signal stalls out, trade down 5%
Our view last week
Taiwan Semiconductor stock loses steam on the way up: after last week's 3.9% rebound, the stock climbs only 1.5% this week, and buyers fall to 52% of volume, down from 78%. Price is back at the 20-day trigger level, inside the no-trade zone, while a sequence of 3 higher lows on the daily chart (373 area toward 408) sketches a base not yet confirmed. The Sell signal is in its 5th week: the decline is losing momentum, but the trade still sits at a 7% loss.
This week's summary
The Taiwan Semiconductor sell signal reaches its 6th week and has never confirmed: price climbed back up over the three observation weeks instead of falling, and the trade still sits at a 5% loss. The weekly picture stays bearish under our parameters, but the decline has lost momentum, with ADX falling for 6 weeks and volumes contracting. Our model advises against new entries: better to wait for clarity before acting.
IQS Phase
57
ordinary
Signal Strength
21
decline starting to make lower lows
Sizing
MINIMUM
Ranking
#54 / 93
US stocks
Trade P&L %
-5.17%
from signal to date, no stop loss
Rank position
ranks 54th among the 93 sell signals for US stocks in our ranking, with a signal strength of 21 out of 100.
Sector context
SectorGrowth Tech
Benchmark ETFXLK
Sector regimeweak phase
Performanceweekly -3.53% · monthly +1.69%
TSM belongs to the growth tech sector (reference ETF XLK). The sector is classified weak phase according to our weekly reading.
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