Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) reported earnings Thursday for the three months ending in March. The CEO said a glut in global chip supplies, as well as "softening end-market demand," would likely clip overall revenues into the end of the year. Despite the caution, shares of the chipmaker are trading higher.
Let's check the condition of the charts and indicators.
In the daily bar chart of TSM, below, I can see a generally positive-looking chart. The shares have been correcting their strong gains into February. TSM moved sideways to lower but has been finding buying interest (support) around $85. TSM is testing the 50-day moving average line Thursday and trades above the bottoming 200-day line.
The On-Balance-Volume (OBV) line shows improvement from early January and tells me that buyers of TSM have become more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is slightly below the zero line but some further price strength should soon get this indicator back above the zero line.