Taiwan Semiconductor (NYSE: TSM) Impulse Rally Calling More Upside

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) is the world’s largest dedicated independent (pure-play) semiconductor foundry and it’s located in the Hsinchu Science and Industrial Park in Hsinchu, Taiwan.

In 2018, TSM spent the year in a corrective structure after it ended the 5 waves advance from 2015 low. The stock did correction unfolded as 3 waves Zigzag Structure which ended in December 2018 low at $34.2 then it turned higher from there breaking to new all time highs.

Up from $34.2 low, TSM initiated an impulsive rally with an incomplete sequence suggesting further upside to be seen for the stock as it’s still trading within the 3rd wave higher which is usually the strongest wave within a bullish cycle. The current rally can see further extension higher toward extreme area $55 — $60 from where a 3 waves pullback takes place before the stock resume higher. Consequently, buyers are expected to remain in control and continue looking to buy during pullbacks in 3 or 7 swing as long as 20018 cycle remain in progress.

TSM Weekly Chart