Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) operates because the world’s main semiconductor foundry, powering the worldwide AI and computing evolution. As demand for superior chips surges, the inventory has damaged into new excessive territory, confirming a robust bullish cycle is now in pressure.
At the moment, we decode the Elliott Wave sample driving this strategic breakout. Moreover, our evaluation gives a transparent technical roadmap with particular targets for its continued ascent. The convergence of robust sector momentum and a transparent wave construction creates a compelling technical alternative.
Elliott Wave Evaluation
TSM started its rally from the 2022 low, unfolding in a transparent three-wave construction. First, wave I peaked at $226.40. Then, wave II pulled again sharply to $134.25. Afterward, the inventory surged to new all-time highs, getting into wave III. Notably, wave III additionally shows a three-wave advance, now getting into the equal legs zone between $301.59 and $341.06.
At this stage, TSM ought to see additional upside to finish the five-wave sequence of wave III by the tip of 2025 or in early Q1 of 2026. After that, a corrective wave IV pullback could comply with presenting one other shopping for alternative. Ultimately, the bullish cycle might resume, concentrating on the 1.618 Fibonacci extension close to $404.
TSM Weekly Chart 10.20.2025
Conclusion
TSM reveals a robust bullish sequence on the weekly chart. Subsequently, buyers ought to deal with pullbacks as strategic shopping for alternatives. Use our Elliott Wave technique to time entries with precision. Enter after the inventory completes a 3-, 7-, or 11-swing correction. Furthermore, our proprietary Blue Field system highlights high-probability zones with distinctive accuracy. Because of this, this disciplined strategy affords readability and confidence to seize the subsequent bullish leg.
Supply: https://elliottwave-forecast.com/video-blog/tsm-impulse-wave/