TSMC Jumps 3.97% to 233.6 as Technicals Confirm Bullish Momentum

TSMC concluded the most recent trading session with a 3.97% gain, closing at 233.6 after testing the day's high of 233.82. This analysis synthesizes key technical perspectives derived from historical price action and indicator readings.
Candlestick Theory
Price action reveals significant support near the June 23 low of 210.32, which aligns with consolidation preceding the current uptrend. Resistance is established at the new swing high of 233.82 (July 2). The bullish engulfing pattern formed on June 24—a 4.65% advance on high volume after a downtrend—signaled momentum reversal. Subsequent breakouts above prior resistance zones (notably the June 27 high of 228.88) confirm bullish conviction.
Moving Average Theory
The ascending 50-day, 100-day, and 200-day SMAs illustrate a robust long-term uptrend, with the price consistently trading above all three. The 50-day SMA has provided dynamic support during pullbacks, most recently in late June. The current alignment (50 > 100 > 200) denotes sustained bullish momentum. A potential concern exists if the price diverges significantly from the 50-day SMA, historically a precursor to short-term consolidation.
MACD & KDJ Indicators
MACD exhibits a bullish crossover above its signal line, with the histogram expanding positively—confirming accelerating upward momentum. Concurrently, KDJ’s %K (83) and %D (78) reflect overbought territory after recent surges. While this suggests near-term exhaustion risk, the MACD’s strength implies pullbacks may be shallow. Divergence is absent, as both oscillators align with the price’s new high.
Bollinger Bands
Volatility expansion is evident as the bands widened during the July 2 breakout, reinforcing the validity of the 233.82 high. Price trading near the upper band signals strong directional bias. The absence of squeeze conditions preceding this move indicates accumulated energy was efficiently converted to upside momentum.
Volume-Price Relationship
The July 2 advance occurred on volume 20% above the 30-day average, validating breakout legitimacy. Notably, upside days since the June 23 low have frequently accompanied above-average volume (e.g., June 24’s 4.65% gain on 14.8M shares), whereas pullbacks transpired on diminishing volume—a hallmark of bullish accumulation. This volume profile reinforces the sustainability of the uptrend.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory (>70) but with headroom prior to extreme readings. While this warrants monitoring for potential consolidation, RSI’s higher low in late June versus price’s higher low demonstrated bullish divergence, foreshadowing the current advance. Its current ascent aligns with momentum but may prompt short-term profit-taking.
Fibonacci Retracement
Applying Fibonacci to the swing low of 210.32 (June 23) and high of 233.82 (July 2) reveals immediate support clusters at 223.84 (23.6%), 220.86 (38.2%), and 218.57 (50%). These levels coincide with prior consolidation zones and the 50-day SMA, creating high-probability buy-the-dip confluences should retracements occur.
Confluence is observed at the 228.88 support (former resistance), backed by the 50-day SMA and 23.6% Fibonacci level—strengthening its technical significance. No material divergences were identified across primary indicators, suggesting synchronized bullish momentum. Near-term caution is warranted due to KDJ overbought signals, though structural uptrend integrity remains intact.