Swing Trade Idea (TSM) 08-24-2021
Our bullish trade for Tuesday, August 24th is TSM (Taiwan Semiconductor). TSM is part of the Technology Sector (XLK). XLK has experienced a 2.1% gain in the last month and both 1M and 6M trends are bullish.
TSM has been relatively rangebound and bounced higher from support at $108. This provides a good risk/reward bullish entry.
As a stop loss, if TSM were to trade below $108 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We wold also focus on cutting losses on this options trade if the value of the vertical spread moves below $1.62.
