Taiwan Stocks Swing 908 Points Before Late Rally to Close Higher
Taipei stocks staged a roller-coaster session on the 27th, surging over 500 points at the open before selling pressure triggered sharp volatility, with a full-day high-low spread of 908.78 points. The index plunged intraday to 45676 points, breaking below the monthly low, before a late rally pulled it back to close up 54.8 points at 46096.23 points, with volume reaching 9765.47億元. Technically, the pattern is called a break-low reversal, opening high, moving low, then whipping back, a breathtaking process that keeps the market highly cautious about future direction.
Bottom Reversal Without Volume Raises Manipulation Fears as Investment Trusts Hold Up Market
Senior analyst Zhou Daiyun said bluntly that a break-low reversal without matching volume is likely market makers painting the chart to lure retail investors in to catch a falling knife. Although the market closed higher today, volume did not really keep up, and while the short-term trend remains upward, investors must not chase impatiently. After-hours chip analysis showed institutional investors posted net buying, but mainly on investment trusts spending 236億元 to support the market, while foreign investors and dealers still applied heavy selling pressure, leaving the overall buying structure shaky.
TSMC Holds NT$2,400 Alone as UMC Slumps and Funds Test the Waters
On the board, heavyweight stocks failed to rise together, showing typical index propped up by TSMC characteristics. Contract chip giant TSMC hit an intraday high of 2405元 and closed above the 2400元 mark, providing support for the index. However, foundry peer UMC plunged 2.39% to close at 122.5元, leaving many stocks deep in the red despite the higher index. Rebound funds instead flowed to low-base oversold groups, with Nanya Technology surging over 6.5%, Wiwynn jumping over 6% and Yageo among others, showing market funds are only testing the waters rather than returning broadly.
Watch Three Signals Tomorrow Morning and Enter Only After They Hold to Survive Long
Facing the murky market, Zhou Daiyun gave clear guidance, urging investors to watch three key signals at tomorrow morning's open. First is whether TSMC can hold above the 2400元 level, with a hold opening the chance for the index to approach the quarterly line, while a break would delay the rebound call again. Second is recovery of the quarterly line, after the index lost it recently, it must hold above it for three consecutive days to confirm a true strengthening. Third is whether volume fills in, as a rebound without volume is hollow and only a rally with volume represents real buying. He stressed that price action can deceive but volume does not, and rather than guessing the bottom every day, investors should patiently wait for the signals to hold, on the investment journey, surviving long matters far more than profiting fast. Investing involves risks, and investors should carefully assess risks and bear responsibility themselves.