Dallas, Texas 04/21/2014 (FINANCIALSTRENDS) – Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) on the daily charts has broken out of a trading range and closed nicely above the upward channel. The stock is trading above it 50 day moving average which is currently at $18.82 and its 200 day moving average which is at $17.72 testament to the strong uptrend the stock have seen over the last one year.
The momentum indicators for Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) are in bullish territory and aren’t showing any signs of tapering and with the breakout mentioned above we believe that the price action on the stock has turned bullish and the momentum indicators support this view. The relative strength index for the stock is also showing no signs of tapering and we believe that the stock can head higher to levels of $22. We believe that till the time the support at $20.43 is held we can see this up movecontinue towards the aforementioned levels.
On the weekly charts for Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) the price action has broken out of a very strong resistance at $19.72 and we believe this up move might continue as there are no signs of lagging momentum. Even the relative strength index for the stock are showing inherent strength and even though the index is in overbought zones, it is not showing any signs of weakness or reversal.
(Figure): Daily Chart for Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM)
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) released its Q1 2014 earnings on Thursday and as per the conference call and the reaction seen on the stock it is safe to assume that the earnings had beaten street estimate. The CEO, had a positive outlook for FY14 -15 and analysts believe that the stock can go higher.