The Day Trader: Medium Volatility Stocks for Active Trading (TA&FA) bot, which demonstrated its prowess by generating a remarkable +9.27% gain while trading TSM (Taiwan Semiconductor Manufacturing Company) over the previous week. In this article, we delve into the recent earning results of TSM, examine the bot's analysis, and shed light on the implications for traders.
Earning Results Analysis:
TSM, a leading global semiconductor manufacturer, released its latest earnings report on April 20. The report revealed earnings per share (EPS) of $1.31, surpassing the estimated figure of $1.22. This positive surprise indicates the company's strong financial performance, which can influence investor sentiment and potentially impact the stock's price.
Market Capitalization and Shares Outstanding:
With 448.66K shares outstanding, TSM currently boasts a market capitalization of approximately $479.56 billion. This metric is a reflection of the total market value of a company's outstanding shares and serves as a key indicator of its size and market dominance.
AI Trading Bot Analysis:
The "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" bot employs advanced algorithms and technical analysis to identify potential trading opportunities. In the case of TSM, the bot flagged an important technical signal when the stock broke above its upper Bollinger Band on May 25, 2023.
The upper Bollinger Band represents a threshold above which the stock is considered overbought. The bot interpreted this breach as a potential signal for an impending drop in TSM's price. Historically, the bot analyzed 48 similar instances where the stock broke above the upper band, finding that in 30 of those cases, the stock subsequently fell. Based on this analysis, the bot calculated the odds of success for a downward move in TSM's price at 62%.
Implications for Traders:
The combination of the AI trading bot's analysis and TSM's recent earnings results presents an interesting opportunity for traders to consider. While the positive earnings report suggests strong fundamentals, the bot's analysis indicates a potential bearish trend due to the breach of the upper Bollinger Band.
Traders may want to closely monitor TSM's price action, particularly if it begins to move back below the upper band and toward the middle band. This could serve as confirmation of the bot's signal and an opportunity to take action, such as selling the stock or exploring put options.
AI trading bots continue to revolutionize the world of active trading, providing traders with invaluable insights and analysis to navigate complex market dynamics. The "Day Trader: Medium Volatility Stocks for Active Trading (TA&FA)" bot demonstrated its efficacy by delivering an impressive +9.27% gain while trading TSM in the previous week. By analyzing TSM's recent earnings report, market capitalization, and technical indicators, traders can make informed decisions based on a holistic understanding of the stock's potential trajectory. As always, it is essential to consider both fundamental and technical factors when engaging in active trading to maximize the probability of success.
The 10-day moving average for TSM crossed bullishly above the 50-day moving average on September 19, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 11, 2024. You may want to consider a long position or call options on TSM as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
TSM moved above its 50-day moving average on September 19, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where TSM advanced for three days, in of 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 255 cases where TSM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for TSM moved out of overbought territory on October 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where TSM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSM broke above its upper Bollinger Band on October 17, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.508) is normal, around the industry mean (7.487). P/E Ratio (30.405) is within average values for comparable stocks, (58.779). Projected Growth (PEG Ratio) (1.173) is also within normal values, averaging (2.825). Dividend Yield (0.013) settles around the average of (0.020) among similar stocks. P/S Ratio (11.669) is also within normal values, averaging (43.322).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of integrated circuits, silicon wafers, diodes and related semiconductor components
Industry Semiconductors