Nasdaq futures fell 0.9%, while S&P 500 futures declined 0.36%. Taiwan Semiconductor shares were down 1.98% at $436.13 before the opening bell, according to Benzinga Pro data.Premarket Weakness Mirrors Broader Tech SelloffTaiwan Semiconductor remains near the upper end of its 52-week trading range, making the stock vulnerable to profit-taking when market sentiment weakens.The pullback also reflects the stock’s strong run over the past year. Shares remain well above key moving averages, which often increases sensitivity to short-term shifts in risk appetite.Technical Picture Remains BullishDespite Friday’s weakness, Taiwan Semiconductor continues to trade in a strong long-term uptrend.The stock is 5.6% above its 20-day simple moving average of $414.68, 13% above its 50-day simple moving average of $387.68 and 34.6% above its 200-day simple moving average of $325.39.That bullish alignment suggests buyers remain in control, even as the stock consolidates near recent highs.The 20-day moving average remains above the 50-day moving average, while the 50-day moving average remains above the 200-day moving average. This structure is consistent with the golden cross formation that emerged in June 2025.Momentum indicators also remain constructive. The moving average convergence divergence, or MACD, remains above its signal line, while the histogram remains positive, indicating improving momentum following the stock’s prior pullback.The next test for shares will be whether they can hold above key support levels while digesting recent gains. A retreat toward the mid-$400 range would likely be viewed as normal consolidation. More significant weakness could increase the risk of a deeper pullback.A key support level to watch is near $385, which aligns closely with the stock’s 50-day moving average and an area where buyers have previously stepped in.Earnings Outlook Remains StrongThe next major catalyst is expected to be the company’s earnings report on July 16.Wall Street expects earnings of $3.69 per share, up from $2.47 per share a year earlier. Revenue is projected to reach $39.76 billion, compared with $30.07 billion in the prior-year period.The stock trades at about 38.1 times earnings, reflecting a premium valuation supported by expectations for continued growth.Analysts remain broadly bullish. Recent forecasts include: