Texas Instruments (TXN) has been trading sideways all year. Can we see a breakout soon from this frustrating range trading? Let's review the charts and indicators to see if we can find a trigger.
In this daily bar chart of TXN, below, we can see that prices were in a sideways market from January to early May and another tighter range from June till now.
Trading volume has slowly diminished from January and the daily On-Balance-Volume (OBV) line has been neutral/flat the whole time.
Prices have crossed above and below the 50-day moving average line and is above the rising 200-day line. The 200-day average line intersects around $106 which is not far below the market.
The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line recently - not a surprise with a trading range market.
In this weekly bar chart of TXN, below, we can see that prices are above the rising 40-week moving average line.
The weekly OBV line has been neutral/flat the past two months. The weekly MACD oscillator is in a bearish take profits mode.
In this Point and Figure chart of TXN, below, we can see an upside price target of $154. A trade at $120 will be a breakout.
Bottom line strategy: TXN has traded sideways for months and it could make an upside breakout. Nothing in technical analysis is 100%, so traders should wait for the breakout. Wait for a trade at $120 to go long and then risk below $110 looking for $154 on the upside.