For those not in the know TSM fabs like 50% of apple chips, all NVDA chips. They are the most sophisticated chip fabrication plant on the globe.
TSM is hanging right around the bottom of the channel of the uptrend.
now this is a solid company, solid financials, 2% annual dividend, diversifying into arizona (with struggles) and germany (with both comes a lesser ability to produce chips than the main Taiwan factory), which removes some of the risk of being solely in Taiwan. Maybe a japan factory as well?
If you bought around 93-92 dollars, set a stop loss at say 87 or 86 being a significant break in trend, or maybe even as low as 84 or 83, a real break in the trend, you would lose somewhere between 6.5% to 10%.
now if TSM continues the uptrend and we go to 100 you are up 7.5%
if we go to 105 youre up 12.9%
if TSM suprasses a high on its trip down in 2022 around 109 to hit 110, you're up 18.2%
and it just continues up from there, i mean you hit 115 and the risk reward is totally worth it. So you're a long term holder buying into the bottom of the uptrend and setting a stop loss around 88-87, 5-6% risk to make maybe 20% on the high upside, maybe 12.9-7.5 on the lowside.
its a decent bet.
full disclosure i think hanging around the bottom of the trend shows a little uncertainty but it also is opportunity for you. i bought days ago.
Submitted September 03, 2023 at 11:22PM by Impossible_Buglar https://ift.tt/woQr2Ml
