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Swing Trade Idea (TSM) January 4, 2022

Our bullish trade for Tuesday, January 4th is Taiwan Semiconductor Manufacturing Company Limited (TSM). TSM is part of the Technology sector that has seen a performance of 4.51% over the last month, while TSM has outperformed its sector with 5.83% growth over the same period.

TSM recently broke above the $125 resistance with $115 as a key support level. Both 1M and 6M trends are bullish and with a technical score of 9 (out of 10), TSM is a very strong stock that will likely continue higher. 

As a stop loss, if TSM were to trade below $120 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $7.40.