Swing Trade Idea (TSM) – September 29, 2021
Our bearish trade for Wednesday, September 29th is TSM (Taiwan Semiconductor). TSM is part of the Technology Sector (XLK). XLK has experienced a 4.7% loss in the last month and its 1M trend turned bearish yesterday.
TSM broke below the 100 D MA and failed the retest indicating that a further decline is likely. This provides a good risk/reward bullish entry. Both 1M and 6M trends are bearish and with a technical score of 3 (out of 10), TSM is a weak stock that will likely continue lower.
As a close, if TSM were to trade above $117 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 above $6.20.
