TXN finds buyers around 131.27 for the third day in a row
Texas Instruments Incorporated (TXN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TXN ended the week 2.73% higher at 132.21 after edging lower $0.60 (-0.45%) today on low volume, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TXN as at Feb 14, 2020):
Friday's trading range has been $2.35 (1.76%), that's slightly below the last trading month's daily average range of $2.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TXN. Prices continued to consolidate within a tight trading range between 131.16 and 133.62 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 131.27 earlier during the day, Texas Instruments bounced off the key technical support level at 131.81 (S1). The failure to close below the support might increase that levels importance as support going forward. The stock found buyers again today around 131.27 for the third trading day in a row after having found demand at 131.16 in the previous session and at 131.64 two days ago. The last time this happened on January 14th, TXN actually lost -1.15% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 131.16 where further sell stops might get activated. With prices trading close to this year's high at 135.70, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Texas Instruments. Out of 444 times, TXN closed higher 60.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.66% with an average market move of 0.91%.