TXN breaks below Thursday's low
Texas Instruments Incorporated (TXN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TXN finished the month 0.46% higher at 127.55 after losing $1.34 (-1.04%) today on high volume, notably underperforming the Nasdaq 100 (1.78%). Today's close at 127.55 marks the lowest recorded closing price since July 2nd. Closing below Thursday's low at 127.74, the share confirmed its breakout through the previous session low after trading up to $2.31 below it intraday.
Daily Candlestick Chart (TXN as at Jul 31, 2020):
Friday's trading range has been $3.17 (2.47%), that's slightly below the last trading month's daily average range of $3.19. 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 bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on August 6, 2019, TXN gained 1.45% on the following trading day.
After trading as low as 125.43 during the day, the stock found support at the 50-day moving average at 126.85. Prices are trading close to the key technical resistance level at 129.72 (R1).
While the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to July's low at 124.67, downside momentum might speed up should Texas Instruments mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Texas Instruments. Out of 20 times, TXN closed higher 55.00% 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 70.00% with an average market move of 1.86%.