Texas Instruments, Inc. (TXN) was reviewed just a couple of weeks ago, and I wrote, "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." The charts have weakened in the past two weeks so let's look at some charts for new clues.
In this daily bar chart of TXN, below, we can see that prices are now below the declining 50-day moving average line. A recent bounce failed at the underside of the line. The 200-day moving average line is still rising but is closer to a test than it was in early March. The daily On-Balance-Volume (OBV) line has weakened the past two weeks suggesting that sellers of TXN have become more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator is now below the zero line for an outright sell signal.
In this weekly bar chart of TXN, below, we can see that prices have made a lower high but they have not made a lower low. The weekly OBV line looks like it has made a small double top while the MACD oscillator that turned lower after a take profits sell signal.
Bottom line: If TXN reaches its Point and Figure price target of $92.88 it will have broken its February low and the rising 200-day moving average line and open the way for further declines to around the $80 area in the months ahead.