Taiwan Semiconductor Manufacturing Company (TSM) is the foundry at the center of the global chip industry, producing the processors that power artificial intelligence, smartphones, and data centers worldwide.
The ascending trendline I’ve drawn in yellow on TSM’s daily chart has been running this show since May 2025.
Every pullback over the past year has come back to that rising trendline support, now sitting around the $335 to $340 zone, and every time it has held. The March selloff was no different. Sellers pushed price right into it and buyers stepped in exactly where they needed to. The structure held and the bounce was forceful.
With that trendline intact, the next probable move is a push back toward the all-time highs just above $390. That level failed before and it will draw sellers again. If buyers can clear it on a confirmed daily close, $400 becomes the next reference point. Round numbers at that magnitude attract profit-taking from traders at every level of the market.
I want to be clear about positioning here: this is not a setup I am looking to buy. Price is well off the trendline and already deep into the range. Getting long here means taking on risk without the trendline sitting close behind as a floor.
What I am watching for is a short opportunity at those overhead levels. The prior all-time high near $390 is the first spot where sellers are likely to show up. The $400 level is the second. If a short gets filled at either of those areas, the trendline is where I would be looking to take profit.
This chart structure has proven it can hold. Overstaying a short into a level that has defended itself multiple times is a way to give back gains that did not have to be given back. We can always wait for confirmation below the trendline to re-enter.
The trendline keeps the bulls in charge until it breaks on a confirmed daily close. Price is heading toward resistance and the levels worth tracking are the prior highs near $390 and $400 above that.
Source: https://www.fxstreet.com/news/tsm-stock-the-trendline-is-in-charge-and-the-bulls-know-it-202604131316
