TSMC is now Oversold

Taiwan Semiconductor’s (TSMC) stock price is Overbought (on a weekly basis) for only the 4th time in the past 25 years.

Remember all that tension and scarcity about semiconductor shortages?

Surely, it hasn’t gone away?

TSMC’s stock price has fallen 40% from its January 2022 high.

Its market capitalisation has been trimmed by $245 billion.

The decline is based on a combination of valuation, market forces, economic ebbs and more so, on the stretched price action of the stock price.

As Russia invaded Ukraine, I wrote this note on Feb 23rd, 2022.

Those puts options are now priced at $18.50.

As far as the stock is concerned, $82 and $76 are buying areas I have circled.

May 10, 2022

by Rob Zdravevski


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