Taiwan Semiconductor Manufacturing Company Limited(TSM) is in an downtrend but momentum is showing some life

(29-Jan-2008) (29-Jan-2008) Taiwan Semiconductor Manufacturing Company Limited(TSM) closed at 8.9, up 0.2 or 2.3 % for the day. Based on our analysis, Taiwan Semiconductor Manufacturing Company Limited(TSM) is in an downtrend but momentum is showing some life.

The closing price of Taiwan Semiconductor Manufacturing Company Limited(TSM) is below its 50 day moving average of 9.41 (Designated by blue line). This indicates that the trend is down. The MACD histogram(Gray bars on the bottom) above the signal line(Dark Red Line) tells us that Taiwan Semiconductor Manufacturing Company Limited(TSM) is gaining momentum. An downtrend with sustained rising momentum could be early sign of reversal. The MACD histogram crossed above the signal line on 28-Jan-2008, about 3 trading days ago.