TXN breaks back above 20-day moving average
Texas Instruments Incorporated (TXN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TXN ended the month 6.93% higher at 126.97 after gaining $2.20 (1.76%) today, slightly underperforming the Nasdaq 100 (1.96%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 124.95, Texas Instruments confirmed its breakout through the previous session high after trading up to $2.75 above it intraday.
Daily Candlestick Chart (TXN as at Jun 30, 2020):
Tuesday's trading range has been $3.35 (2.69%), that's slightly above the last trading month's daily average range of $3.24. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for TXN.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 126.78 for the first time since June 23rd. When this moving average was crossed above the last time on May 20th, TXN actually lost -3.42% on the following trading day. Prices are trading close to the key technical resistance level at 128.24 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 128.10 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Texas Instruments. Out of 321 times, TXN closed higher 53.27% 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 57.94% with an average market move of 0.60%.