Once A Trend Is Broken …

According to Wyckoff principles;

‘Once an up-trend is decisively broken, the market will (typically) attempt some kind of rally to test the break’.

Looking at the daily chart of Taiwan Semi, TSM, there’s no doubt the uptrend has been broken.

Taiwan Semi, TSM, Daily

The amount of (daily) down-force exhibited on the July 17th, trend-break, was the most ever for TSM.

With such a massive down-force, we’re in uncharted territory. The test, if it comes can complete at any level.

Currently as of 1:25 p.m., EST, TSM is trading at 170.6, near the 23.6%, retrace.

Stay Tuned

Charts by StockCharts

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The Danger Point®, trade mark: No. 6,505,279