Profit Increase at TSMC. Why Does the Stock Continue to Decline After Gains?

While TSMC’s announcement of a profit rise is a positive development, the shares declined 2.4% within 24 hours. The RSI stands at 45, indicating the stock is neither overbought nor oversold, but the MACD is negative and below the signal line, signalling short‑term selling pressure. The closing price above the 20‑ and 50‑day moving averages suggests a gradual downward trend. Consequently, a modest decline over the next one to three days is likely. Investors are advised to closely monitor technical indicators and market sentiment.