Swing Trade Idea (TSM) – June 25, 2021
Our bullish trade for Friday, June 25th is TSM (Taiwan Semiconductor). TSM is part of the Technology Sector (XLK). XLK has experienced a 2.6% gain in the last month as rotation back into Tech continues.
TSM has been relatively rangebound and bounced higher from support at $112. Additionally, TSM’s 1M and 6M trends are now bullish. With a technical score of 6 (out of 10), TSM is a neutral stock that will likely continue higher.
As a stop loss, if TSM were to trade below $112 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $2.00.
