TXN finds buyers around 99.01 for the third day in a row
Texas Instruments Incorporated (TXN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TXN finished Thursday at 107.76 gaining $8.60 (8.67%), notably outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 105.83, the stock confirmed its breakout through the prior session high after trading up to $3.00 above it intraday.
Daily Candlestick Chart (TXN as at Mar 26, 2020):
Thursday's trading range has been $9.82 (9.88%), that's above the last trading month's daily average range of $7.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TXN.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, TXN actually lost -5.88% on the following trading day.
The market managed to close above the 20-day moving average at 106.53 for the first time since February 20th. Unable to break through the key technical resistance level at 108.61 (R1), the share closed below it after spiking up to 108.83 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. Texas Instruments found buyers again today around 99.01 for the third trading day in a row after having found demand at 98.51 in the previous session and at 99.46 two days ago.
Though TXN is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Texas Instruments. Out of 386 times, TXN closed higher 50.00% 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 57.25% with an average market move of 0.52%.