Taiwan Semiconductor ADR saw a positive improvement to its Relative Strength (RS) Rating on Thursday, with an increase from 90 to 93. The stock continues to race higher as it now enters the profit segment on a MarketSmith daily chart. Does it now trigger the IBD 8-week hold rule? Maybe.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This proprietary rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against the rest of the market.
History shows that the stocks that go on to make the biggest gains typically have an 80 or higher RS Rating as they launch their biggest price moves.
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Taiwan Semiconductor ADR has risen more than 5% past a 100.70 entry in a first-stage cup with handle, meaning it's now out of a proper buy zone. In fact, as of this writing, it is more than 20% above the pivot. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
TSM Earnings Report
Taiwan Semiconductor ADR saw both earnings and sales growth rise last quarter. Earnings-per-share increased from -26% to -19%. Revenue rose from -12% to 0%.
The company holds the No. 1 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. NXP Semiconductors and Intel are also among the group's highest-rated stocks.
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