You don't have to be an expert technical analyst to see what's going on in microchip manufacturer and service provider Taiwan Semiconductor ( TSM). TSM is currently forming an uptrending channel, a trading range that's bounded by a trendline resistance and trendline support level. Those support and resistance levels give us a high probability range for this stock to trade within. And as you might expect, the ideal time to be a buyer is on a bounce off of support. When you're looking to buy a stock within a trend channel, buying after a bounce off of support makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Keep that in mind when putting in a stop loss in TSM; the 50-day moving average looks like a good dynamic level for a stop. Keep a close eye on this one - with shares sitting right at support, it's make-or-break time for Taiwan Semiconductor's pattern.