Does tsm stock has scope to increase before us elections

TSM's stock does not appear to have significant scope for increase before the US elections. Here's the analysis to support this conclusion:

1. Current Technical Indicators: TSM's closing price on October 30, 2024, was $194.48. The stock's trading volume was 10.01 million shares, which is a notable indicator of market activity. However, the stock's RSI was at 45.97, which is neither overbought nor oversold, suggesting a lack of momentum that would typically precede a significant price movement.

TSM Trend

2. Moving Averages: The stock's 5-day moving average was $197.49, slightly above the closing price, while the 10-day moving average was $199.54 and the 20-day moving average was $192.86. The 30-day moving average was $187.76, and the 60-day moving average was $177.82, with the 50-day moving average at $179.53 and the 120-day moving average at $171.91[^4). None of these moving averages are trending upwards, which does not suggest an imminent price increase.

TSM Trend

3. Market Sentiment and Elections: Historically, US markets have risen in election years, but this trend is influenced more by the health of the economy and the direction of policies rather than the election outcome itself. Given the current close race and the uncertainty surrounding the election results, investors may be cautious, which could limit upward pressure on TSM's stock price.
4. Recent Market Trends: The S&P 500 has shown increased volatility leading up to the elections, with a tendency to rally on the day of the results, regardless of the outcome. However, this trend does not necessarily translate to individual stock performances, and TSM's lack of momentum and current price position suggest that it may not benefit from this typical election-driven volatility.
5. Economic and Policy Impact: The impact of policies is reflected in corporate profits, which in turn affect market trajectories. If the current policies or policy expectations do not favor TSM's sector or overall market sentiment, the stock may not experience an increase before the elections.

In conclusion, TSM's stock does not exhibit strong indicators of an imminent price increase, and the influence of the US elections on stock prices is complex and multifaceted, making it difficult to predict a significant uptick in TSM's stock solely based on the election event.