Testing The Underside
Weekly Close, TSM
Starting with the weekly close of TSM below, we can see the recent top, breakdown and now test.
Closer-in on the next chart, the market’s testing resistance.
Looking at the daily close, it gets more intriguing.
Daily Close, TSM
Looks like TSM’s at the right edge of a downward channel.
A reversal away from this area confirms the channel and weights probability to more downside (not advice, not a recommendation).
Taiwan Semi (TSM) is the largest cap in the Emerging Markets, EEM.
Leveraged inverse of the fund is EDZ.
If we get a reversal in TSM this session or possibly next, it may affect the overall emerging markets sector, dragging the EEM down as well.
Unless the tone changes (U.S. and world), meaning that volatility would have to subside, price action behavior at this juncture, suggests it’s a bear market.
Charts by StockCharts
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