We wrote about Texas Instruments (TXN) yesterday, where I said, "Even though TXN has a higher price target from our Point and Figure chart, I also know that TXN has rallied nearly eight-fold from its 2009 nadir. Clearing the $115-$120 area from January may be difficult and I would prefer to stand aside for more evidence." There seems to be some market chatter swirling around about TXN today so another look at the charts is warranted.
In this updated daily bar chart of TXN, below, we can see that TXN is poised to test the rising 50-day moving average line. The daily volume and the On-Balance-Volume (OBV) line are not signaling aggressive buying and the Moving Average Convergence Divergence (MACD) oscillator is narrowing slightly.
In this weekly chart of TXN, below, we are 60% done with the week and the indicators and leaning more to the downside.
In this Point and Figure chart of TXN, below, we can see that a decline to $96.20 would be bearish and a rally to $122.20 would be a clear upside breakout.
Bottom line -- despite the chatter in the marketplace, the price and volume patterns are not suggesting an upside breakout near-term, but like many situations these days, things could turn on a dime.