The charts and indicators on Texas Instruments Inc. (TXN) looked bullish to us last month, when we said, "TXN might trade sideways again before resuming its advance, or prices might dip toward $90 in the short run. Over the intermediate term, I would look for TXN to trade higher -- with $100 and then $125 as our upside price targets." TXN traded higher into early November and it has since stalled, but at a high price level and near its 52-week highs. Our $100 price target is not far off and I haven't forgotten about $125. Let's review the charts and indicators to see if everything is on track for higher prices in the weeks ahead.
In this daily bar chart of TXN, below, we can see that prices are above the rising 50-day moving average line. This indicator was last tested in August and early September. The rising 200-day moving average line was last tested in early July.
The daily On-Balance-Volume (OBV) line has recently flattened out, with the sideways price action, but it rose from May and broke out on the upside in August before prices did. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in late October to signal a take-profits sell signal.
In this weekly bar chart of TXN, below, we have a bullish combination of our favorite indicators. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising since July 2015 to support and confirm the price advance. The Moving Average Convergence Divergence (MACD) oscillator turned up with a bullish crossover in September. This is a fresh, outright go-long signal.
In this updated Point and Figure chart of TXN, below, we can see the sharp rally and a potential longer-term price target of $135.29.
Bottom line: TXN has been in a strong uptrend since late 2015. Prices have traded sideways for about four weeks, but I would anticipate that the rally will resume and our price targets of $100, $125 and $135 can be reached in the months ahead.