Watch These TSMC Price Levels as the Chipmaker’s Earnings Report Looms | Global News Avenue

TSMC (TSMShares of the contract chipmaker are likely to remain in the spotlight ahead of the contract chipmaker’s fourth-quarter earnings report before the bell on Thursday, with investors expecting Artificial Intelligence (AI)– Drive demand to drive results.

Analysts expect the Taiwanese chip giant to post quarterly profit of $11.4 billion, driven by surging demand for advanced chips used in artificial intelligence infrastructure. Reuters reported. Investors may have high expectations after the company reports results Sales growth by 34% in 2024.

The chipmaker’s prospects and Capital Expenditure (CapEx) The company is likely to be under scrutiny as it continues to spend billions of dollars building new factories due to export restrictions and the potential fallout. tariff under the incoming Trump administration.

TSMC’s stock price has risen by 80% in 2024, and from the beginning of the year to Friday’s close, the stock price rose by about 5%. The company’s shares fell 3.5% in recent trading on Monday amid broader fallout. Chip stocks fall.

Next, let’s break it down technical On TSMC’s chart, identify important price levels that investors will likely watch leading up to the chipmaker’s earnings report.

Ascending Triangle Retest

TSMC stock price breaks through 11th week ascending triangle Above average earlier this month volume But it has since pulled back to retest the pattern’s top trendline.

Despite the stock’s recent pullback, Relative Strength Index (RSI) It remains above the 50 threshold, indicating that price momentum remains in favor of the bulls.

Let’s take a closer look at TSMC’s chart to identify potential bullish points price target If a stock enters price discovery mode and also finds several important support level Worth monitoring during dips.

Bullish Price Targets to Watch

Predicted price targets if the stock breaks out to new highs record highinvestors can apply measurement mobile technology, also known as Measurement principle.

This is accomplished by calculating the distance between the two trend lines of the ascending triangle and adding that amount to the initial value. breakthrough point of view. For example, if we add $206 to $40, with a forecast target of $246, which is about 18% higher than Friday’s closing price, investors may decide Lock in profits.

Important support levels to track

Ahead of Monday’s decline, the $206 level could provide a base near the top trendline of the ascending triangle.

But now, if the stock moves lower, the stock could drop to around $190, a level that could attract buying interest closer to $190 on the chart. horizontal line linked to the famous july high swing with several crests and troughs It is formed from August to December.

Finally, a decisive break down A move below this level would open the door for a drop to the $175 level. Buy and hold investors may be interested in accumulation Positioning in this area is close to August swing highs, October swing lowand nearby upward-sloping 200-day moving average.

The reviews, opinions and analyzes expressed on Investopedia are for informational purposes only. read our Warranty and Disclaimer Learn more.

As of the date of this writing, the author did not own any of the securities mentioned.