TXN closes below its opening price unable to hold early session gains
Texas Instruments Incorporated (TXN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
TXN finished Thursday at 125.81 gaining $1.01 (0.81%), slightly outperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. Trading $0.78 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 02, 2020):
Thursday's trading range has been $1.74 (1.38%), that's far below the last trading month's daily average range of $3.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for TXN. Prices continued to consolidate within a tight trading range between 124.35 and 127.70 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 127.70 (R1). After having been unable to move above 126.86 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 127.17. The last time this happened on Monday, TXN actually gained 1.76% on the following trading day.
Texas Instruments shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 127.70 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 122.35 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Texas Instruments. Out of 13 times, TXN closed higher 69.23% 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 61.54% with an average market move of 1.28%.