We reviewed the charts and indicators of chipmaker Texas Instruments (TXN) on June 30 and here on Tuesday a sell side firm cut its fundamental evaluation of the stock to hold with a $150 price target. Let's check the charts again.
In this daily bar chart of TXN, below, we can see that prices remain in a downward trend. Prices are below the negatively sloped 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) line moved higher in March to May but down again in June as traders shifted back to an aggressive selling stance. The Moving Average Convergence Divergence (MACD) oscillator is bearish but trying to signal a cover shorts message.
In this weekly Japanese candlestick chart of TXN, below, we see a bearish picture as prices have rolled over for several months to make a top formation. TXN trades below the declining 40-week moving average line. There is a bearish engulfing pattern in June to continue the decline. The weekly OBV line is in a decline and the MACD oscillator is bearish.
In this daily Point and Figure chart of TXN, below, we can see a potential price target in the $137 area.
In this weekly Point and Figure chart of TXN, below, a price target in the $121 area is projected.
Bottom line strategy: TXN could bounce if the broad market averages recover the balance of July, but the trend is down and traders should avoid the long side of this chipmaker.
