Taiwan Semiconductor (TSM) Stock Technicals: Falls 10.78% on Thursday, RSI Oversold

TSMC fell 10.78% to $353.10 in Thursday, November 5 trading, on volume more than three times its 20-day average, as the stock closed at its 20-day low and near its three-month low. The drop came with an oversold RSI, but that reading has not yet offset the broader deterioration: the price is below both key moving averages, momentum remains negative and trading volume surged as the decline accelerated.

Trend & Price Action

The session’s decline extended TSMC’s losses to 18.23% over five days and 22.90% over one month. The share price finished below its 20-day moving average of 420.33 and its 50-day average of 432.68, a sign that recent weakness has become entrenched rather than limited to a single volatile session. A death cross—when the shorter-term average falls below the longer-term one—formed three sessions before the latest session. The 20-day average’s slope was also negative, falling 4.68% over five days. Together, those signals indicate that both recent price direction and the average trend are pointing lower. TSMC ended at the stated 20-day support of $353.10, just above its three-month low of $351.19. That leaves little room between the closing price and the recent low: a break below this area would put the stock at a lower point in its three-month range, while a hold would offer an initial sign that selling pressure is meeting support. The price is also below the lower Bollinger Band, at a %B reading of -27%. Bollinger Bands compare price with a rolling average and measure how far it has moved from that average; a reading below the lower band shows an unusually weak position, not proof that a rebound is due. The bands are widening, consistent with elevated volatility.