TSM (Taiwan Semiconductor)-Breakout Play with Strong Fundamenta

Ticker: TSM (NYSE)
Recommendation: BUY
Current Price: $216.62
Entry Zone: $216 - $218 (Breakout confirmation)
Stop Loss: $190 (Key support level, -12.3% from entry)
Take Profit: $270.04 (+24.7% upside)
Risk/Reward Ratio: 1:2

📈 Technical Analysis
Trend: Strong bullish momentum across all timeframes (Daily/4H/1H).

Key Levels:

Support: $200 (SMA-50), $190 (Major swing low).

Resistance: $218 (Bollinger High), $270 (Fibonacci extension).

Indicators:

RSI (Daily): 72.98 (Approaching overbought but with room to run in strong trends).

MACD: Bullish crossover, positive momentum.

Volume: Rising on upward moves, confirming buyer interest.

💡 Fundamental Catalyst
Strong Growth: Revenue +33.8% YoY, Net Income +36% YoY.

Undervalued Metrics: P/S Ratio of 0.35 (Sector avg: ~5.0).

Low Debt: Debt-to-Equity of 0.22, Interest Coverage Ratio of 174x.

🎯 Why This Trade?
Breakout Potential: TSM is testing multi-week highs with volume support.

Semiconductor Sector Strength: NVDA/AMD leading sector rally, TSM as a key supplier.

High Reward/Risk: Clear SL level with 2x upside potential.

⚡ Trade Management
Add-on: Consider adding at $225 if momentum continues.

Trailing Stop: Move SL to breakeven at $220 if price reaches $240.

Watchlist: Monitor NASDAQ/SOX index correlation.

📉 Risks:

Broad market pullback.

Geopolitical tensions (Taiwan exposure).

✅ Verdict: TSM combines technical breakout strength with undervalued fundamentals. A high-conviction trade for swing traders.

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