The move for semiconductor stocks this year has been strong. The group has been one of the best performers in 2019.
Led by Intel (INTC) and Broadcom (AVGO) , the semis are in the top 10 of all sectors so far this year. Taiwan Semiconductor (TSM) is a strong name too, but it has been lagging some of the better performers. Still, the stock has been on a tremendous roll since just after New Year's, up some 25%.
Volume levels were high in January as the stock bolted out of the gate and price action has only become better. The cloud is solid here, too, with an expanding range.
Resistance is ahead around the $44 mark, but that is still 5% higher, so room to move up. Momentum indicators are bullish; the Relative Strength Index (RSI) has a nice and steep slope. This indicates the stock is performing far better than the market.
We believe TSM will move with the purple lines over the coming days and weeks.