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Taiwan Stocks Plunge Below Quarterly Support; Analysts Identify Three Key Defense Levels
Electronic Technology · Semiconductors · economic_daily · 2026-10-22
Taiwan's stock market suffered a sharp decline, breaking through the quarterly support level amid geopolitical tensions and holiday-related uncertainty.
What Happened
Market Volatility: The Taiwan Stock Exchange experienced a significant downturn yesterday, falling 846 points to close at 46,041 as geopolitical tensions and pre-holiday caution triggered widespread selling.
Key Support Levels: Market analysts have identified three critical support levels to watch: 45,924 points based on Fibonacci retracement, the 45,121-point mark at the 6-month moving average, and the 44,669-point level.
Capital Flows: While foreign institutional investors and proprietary traders offloaded shares heavily, domestic institutional investors and state-backed funds continued to provide support, highlighting a tug-of-war in market sentiment.
Outlook: Next Wednesday is viewed as a pivotal turning point; if TSMC can stabilize at 2,385 and the index reclaims the quarterly line, a rebound may follow, otherwise, a prolonged consolidation is expected.