Texas Instruments (TXN) is indicated to open higher this Monday morning. Prices corrected lower from June and bottomed from October to December. The technical stage looks set for further gains in the short-run. Let's check out the charts and indicators.
In this daily bar chart of TXN, below, we can see a number of bullish signals. Back in June-July-August we can see a number of upside attempts in the $116-$118 area before the downside move got underway. In late October we can see a fast trade down to $88 and very heavy volume as some investors and traders probably sold and others became aggressive buyers. Prices rebounded up to early December to $102 or so before a late December retest.
The retest of the October low was on much lighter volume telling us that the selling had dried up. Not only did the selling dry up but the daily On-Balance-Volume (OBV) line began a nice rise from the end of October and it did not decline with prices in December. A rising OBV line is a sign of aggressive buying.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed the zero line in January for an outright go long signal. Cover shorts signals are seen in early November and late December. The MACD oscillator has recently narrowed and could cross to a take profits sell signal.
In this weekly bar chart of TXN, below, we can see the longer-term indicators rotating to the upside. Prices are above the flat 40-week moving average line.
The weekly OBV line has been edging up the past four months but is still below its 2018 peak.
The weekly MACD oscillator crossed to the upside from below the zero line in January for a cover shorts buy signal. An outright buy signal will need a crossing of the zero line.
In this first Point and Figure chart of TXN, below, we can see an upside price target of $108.89. This chart uses daily data. Overhead chart resistance is seen in the $109 to $115 area.
In this second Point and Figure chart of TXN, below, we can see more history because the chart uses weekly data. A potential longer-term price target of $135 is being indicated.
Bottom line strategy: With bullish technical studies and a potential $135 price target (weekly chart), we should see the price of TXN work higher. There is some overhead chart resistance to work through, but if the broad market works higher into the second quarter we should see TXN make new highs. Traders should risk a close below $102.