Taiwan Semiconductor Manufacturing Company (TSM) is a key chip foundry, making processors used in artificial intelligence, smartphones, and data centres. A rising trendline on the daily chart has been in place since May 2025.<\/p>\n
Over the past year, pullbacks have returned to this trendline, which sits around $335 to $340, and price has held there each time. During the March sell-off, the price again fell into that zone and then rebounded.<\/p>\n
With the trendline still holding, price could move back towards the previous all-time highs just above $390. If price closes above that level on a daily basis, $400 becomes the next level to watch.<\/p>\n
The view presented does not describe a plan to buy at current levels, as price is far from the trendline support. The focus is on possible selling pressure near $390 and $400, with the trendline area marked as a possible profit zone.<\/p>\n
The trend remains upward unless there is a confirmed daily close below the trendline. Key levels mentioned are $335 to $340 for support, and $390 and $400 for resistance.<\/p>\n
The primary structure we’re tracking is the ascending trendline that has supported Taiwan Semiconductor’s stock since May of 2025. This support level, now around the $335 to $340 area, successfully held during the market-wide selloff we saw in March. The bounce from that zone was strong, reinforcing the power of this bullish trend.<\/p>\n
Recent data supports the strength leading into this test of the highs. We saw TSM report strong Q1 2026 earnings last week, with revenues up 25% year-over-year, largely due to continued demand for their advanced 3-nanometer chips for AI applications. Furthermore, industry-wide reports show global data center spending is forecast to increase another 20% this year, directly benefiting TSM’s order book.<\/p>\n
For the coming weeks, as the stock approaches the prior all-time high near $390, we can look at buying put options. Specifically, May expiration puts with a strike price around $380 or $375 could offer a defined-risk way to profit from a potential rejection. This strategy positions for a pullback toward the established trendline support.<\/p>\n
Another approach is to sell a bear call credit spread for the May monthly expiration. By selling the $395 call and buying the $405 call, we collect a premium and will profit if TSM’s stock price remains below $395 by expiration. This is a higher-probability trade that capitalizes on the stock failing to break out to new highs immediately.<\/p>\n
The profit target for any bearish position should be the ascending trendline, currently near $335. We must remember how strong this support has been over the last year, so overstaying a short position as price approaches it is not advisable. We can respect the level that has repeatedly proven itself.<\/p>\n
If we are wrong and buyers push the stock through the $390-$400 resistance zone on a confirmed daily close, the bearish trades must be closed. A breakout would invalidate the setup and signal the uptrend is accelerating. In that scenario, aggressive traders could then pivot to buying call options to participate in the next leg higher.<\/p>\n","protected":false},"excerpt":{"rendered":"
TSM\u2019s uptrend holds above $335\u2013$340 support; watch resistance near $390\u2013$400 for potential selling pressure.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-44519","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t