TSM builds a bullish consolidation pattern

Taiwan Semiconductor (TSM) is building a bullish consolidation pattern dating back to early October. The immediate setup remains constructive, with a high degree of confidence in this pattern as long as TSM holds above its rising 13-, 26-, and 40-day moving averages near 293.55–291.31. A decisive breakout above the 311–314 resistance zone would confirm this tactical base, opening the door to further upside toward 355. On the downside, additional chart support is evident from 284 down to 275 if a deeper pullback develops.

We also highlighted constructive patterns for the VanEck Semiconductor ETF (SMH) in our latest The Sector Edge and for Micron (MU) and Lam Research (LRCX) in this blog yesterday.

Chart 1: Taiwan Semiconductor (TSM)