Taiwan Semiconductor Manufacturing: #PowerStocks Series Pick Of The Week (June 2024)

Did you notice the S&P 500 sprinted 4.82% in 3 weeks without skipping a beat? Until last night. The pullback is finally here, and I'm relishing it. Why? A pullback will bring down the prices of most stocks, allowing swing traders (like myself) to buy them on the cheap and ride on the stock's next explosive upmove. Before I share the stock that I'm eagerly looking forward to buy for a swing trade, let's review last week's #PowerStocks pick, General Motors (GM).

Review Of Last Week's Pick Of The Week

General Motors (GM) was last week's stock pick of the week. We've uncovered a support area ~$45.50 and had expected its share price to drop to that region. However, the market had other plans. Its share price rose instead. Because the pullback in the S&P 500 is likely to continue, there's a good chance of the share price of General Motors to reverse to ~$45.50 soon. I'll be keeping a close watch, and I think you should too! Shall we analyze this week's swing trading opportunity together - Taiwan Semiconductor Manufacturing (TSM)?

Why Is Swing Trading Taiwan Semiconductor Manufacturing (TSM) Worth It?

Source: investor.tsmc.com

Taiwan Semiconductor Manufacturing (TSM), is also known as TSMC as its abbreviation. It's often considered the most important semiconductor company in the world, producing around 90% of the world's super-advanced semiconductor chips. Given its standing in the world, it's unsurprising that its shares have been on an exponential rise, surging as much as 34.1% in recent months. And here's the best part - a swing trading opportunity is just around the corner. What’s the price area I’m watching for an entry? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Taiwan Semiconductor Manufacturing (TSM)

Let's examine 2 things:

1. The trend of Taiwan Semiconductor Manufacturing's share price
2. Its share performance against the US stock market

After a sharp drop in its share price, can you tell that Taiwan Semiconductor Manufacturing's share price is in a mighty uptrend? While the S&P 500 rose 4.4% in the last 3 months, Taiwan Semiconductor Manufacturing's share price rose 23.7%! That's more than a 5x outperformance! You'll want to continue analyzing this stock for a swing trading opportunity.

How Explosive Is Taiwan Semiconductor Manufacturing (TSM)?

Knowing that the share performance of Taiwan Semiconductor Manufacturing has been outstanding, you'll want to find out whether its shares have the tendency to explode upwards in price. To save you time, I've identified 17 upmoves in the past 11 months. For a $776b company, these upmoves measuring between 4.1% and 26.9% are eye-popping! And it gets crazier here. Since 2024, its upmoves have grown in magnitude, with 5 out of 7 measuring double-digit! You're all pumped up and ready to enter a buy order. Should you?

Key Price Levels

Should you be buying its shares for a swing trade now? Let's arrive at the answer by uncovering its key price levels, also known as support and resistance. Taiwan Semiconductor Manufacturing's share price is at its support area of $171.50, but I don't think it's time to buy its shares yet. Given that the S&P 500 is pulling back, the share price of Taiwan Semiconductor Manufacturing may continue to dip below $171.50 before rising explosively. Therefore, waiting for this scenario to play out before buying its shares for a swing trade is a good idea. Here's a tip: You'll want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!