TSM (Taiwan Semiconductor) offers an objective short entry on this breakdown below the bearish rising wedge pattern. The first price target is 28.23 with the second & final target at 26.76. The suggested stop for this trade is any daily close above 31.90 with a suggested beta-adjustment of 0.9.
TSM daily Nov 2nd
TSM is a semiconductor stock & as the semis are one of my favor sector to trade short at this time, there have been numerous semiconductor trade ideas, both official & unofficial, shared recently, including the SMH/SOXL semiconductor sector etf Active Short Trade. As such, make sure not to exceed your target exposure to the semiconductor sector if your are currently short or plan to engage the semiconductor sector on the short side. Typically, I try to keep my exposure to any one sector or highly correlated stocks/commodities, etc… limited to a maximum of about 30% of my total portfolio or trading account. Also keep in mind that the individual components of some sectors, such as the semiconductors & gold mining stocks, tend to have a high correlation while the components of some other sectors or industries might have a much lower correlation due to the fact they might offer a more diversified line of products or services.