TXN closes within prior day's range after lackluster session
Texas Instruments Incorporated (TXN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TXN ended the week 4.79% higher at 113.43 after edging lower $0.03 (-0.03%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TXN as at May 22, 2020):
Friday's trading range has been $1.46 (1.29%), that's far below the last trading month's daily average range of $3.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TXN.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading as low as 112.32 during the day, the stock found support at the 20-day moving average at 113.20. The last time this happened on January 23rd, TXN actually lost -2.78% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Trading close to March's high at 120.12 we might see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Texas Instruments. Out of 282 times, TXN closed higher 55.67% 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 62.77% with an average market move of 1.22%.