News / Taiwan / economic_daily

Taiwan Stocks Breach Quarterly Moving Average: Analysts Urge Caution

Electronic Technology · Semiconductors · economic_daily · 2026-10-24

Taiwan's stock market saw a sharp decline on the 22nd, falling below the quarterly moving average as risk aversion intensified amid geopolitical and economic uncertainties.

What Happened

Market Volatility and Technical Breakdown: The Taiwan stock market experienced a significant pullback on the 22nd, closing down 846.34 points at 46,041.43, effectively breaking below the key quarterly moving average. Intraday volatility reached nearly 1,300 points as selling pressure intensified throughout the session.

Drivers of the Downturn: Analysts attribute the decline to rising oil prices and heightened global risk aversion, which overshadowed positive corporate earnings reports. While defensive sectors like finance and shipping held up, the technology sector faced heavy selling, reflecting a broader shift toward risk-off sentiment.

Fundamental Outlook vs. External Risks: Experts note that the current correction is not driven by deteriorating fundamentals, as many companies continue to report strong revenue growth. Instead, market participants are sidelined by upcoming macroeconomic events, including Federal Reserve meetings and the U.S. midterm elections.

Strategic Investment Advice: Market observers advise caution, noting that the downward trend in the monthly moving average suggests a challenging short-term environment. Investors are encouraged to monitor whether the index can reclaim the quarterly moving average early next week, with potential support levels identified near the 45,500-point mark.

Read original