Texas Instruments $TXN Trade IdeaYesterday I took a trade on NASDAQ:TXN
The price broke above the 50 MA and all the key moving averges I use for short term trading.
In addition the price closed with a bullish hammer resting on the moving average.
Recently the price also closed above the long term diagonal resistance.
THe oscillators are showing overbought condition in the short term, so I could see a pullback at some point to test the MAs, however the stock seems to be showing bullish momentum.
My price target will be around $165 in the short/medium term but I might exit with profit at $160.50 if it starts to look overextended in the short term and re-enter if the price makes a pullback before another way up.
Hope this was helpful for the readers, can follow me for more ideas.
Thank you,
BK
TII trade ideas
The Semiconductor Industry and Texas Instruments Long TXN
Company Overview: Texas Instruments (TXN) is a prominent and long-established semiconductor company headquartered in Dallas, Texas. Founded in 1930, TXN has evolved into a global leader in the semiconductor industry, with a diverse portfolio of analog and embedded processing products. Here are some key aspects of the company:
Product Range:
TXN specializes in analog and embedded processing semiconductors. Analog chips are designed to process real-world signals such as sound, light, temperature, and motion. They are used in a wide range of applications, from industrial and automotive systems to consumer electronics.
As tensions between Taiwan and China continue to rise, it is a good idea to consider the semiconductor business as an industry to invest in. The largest chip manufacturer in Taiwan by far is Taiwan Semiconductor Manufacturing Co (TSMC). Although TSMC focuses on digital semiconductors, the hype alone could lead many investors to add TXN to their portfolio simply because they don't understand the difference. TXN is also in a unique position, where in the event of a China-Taiwan conflict, it could certainly garner increased government funding.
We are currently watching three main price points.
1. $156.00
2. $167.00
3. $186.00
We are currently hitting the direct top of our Ichimoku cloud.
If we bounce here i anticipate All targets being hit within 2 months.
Especially if we see geopolitical events continue in their current manner.
TXN bears appear to be exhausted from consolidationNASDAQ:TXN has been consolidating below the bottom band of the quarterly VWAP for some time. Volume indicators show bears leaving and bulls entering, and on the 1hr chart we have some nice long bull candles. It seems the price is ready to make its way back toward the top of the quarterly VWAP.
Texas Instruments WCA - RectangleCompany: Texas Instruments Incorporated
Ticker: TXN
Exchange: NASDAQ
Sector: Technology
Introduction:
Today, we turn our gaze towards Texas Instruments Incorporated (TXN), a distinguished player in the Technology sector listed on the NASDAQ. The weekly chart reveals a Rectangle pattern that has been in formation over the course of 490 days, indicating a possible bullish breakout.
Rectangle Pattern:
A Rectangle pattern typically denotes a period of market consolidation, before the price action resumes/reverses its prior direction. The pattern is characterized by price movements within a well-defined support and resistance range.
Analysis:
Previously, TXN was on a downward trend, which was halted by a consolidation phase, creating a Rectangle pattern over 490 days. This pattern, with its three touch points at the upper boundary and two at the lower, suggests a likely bullish breakout.
At present, the price is above the 200 EMA, signaling a bullish market. If we observe a successful breakout above the upper horizontal resistance level of 186.31, it could provide a promising opportunity for a long position.
In the event of a successful breakout, the price target would be situated at 226.52, representing a potential gain of about 21.60%. Please note, a minor resistance may be encountered at 200.97 en route to the price target.
Conclusion:
Texas Instruments' weekly chart displays an interesting setup with a bullish Rectangle pattern, hinting at a potential reversal of the previous downtrend. This setup could offer a beneficial long trading opportunity.
As always, use this analysis in combination with your overall market research and risk management strategy, not as direct trading advice.
If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you profitable trading!
Best regards,
Karim Subhieh
Disclaimer: This analysis is not financial advice and is intended for educational purposes only. Always conduct your own research and consult with a financial advisor before making investment decisions.
RectangleThis is not a perfect rectangle but rarely is anything perfect as of late.
There appears to be an M forming that has peak 2 higher than peak 1 which usually points to a Shark or a Cypher, but there is also the rectangle to think about as it has a resistance line and a support line.
Several touches (blue stars) to the support line and each touch increases the support at this level.
This looks like it will get close to the support line at least and a lot will depend on market sentiment.
No recommendation/.786 would mark a cypher/.886 and 1.113 would mark a shark.
Any pattern can fail.
TXN LongAlright, I'm comfortable with this now.
RSI divergence, Stoch RSI super strong, Deltas flipping from bear to neutral
This is still not confirmed, set a stop under 161/162 spot (or whatever your spot might be, 160 is the last low)
Buy some time, probably a month worth of theta would be good enough, maybe less depending on your general market outlook. Probably 165 strk
PT would be 168/169, take profit 1, ~172 id say at least be out half of your pos.
Let's see!
TXN LongOne of the more oversold chip stocks due to slowing forecast in recent ER.
Forming a very solid base at weekly vwap support, RSI moving up and forming a divergence on 1hr, 2hr, and 4hr.
PT would be around 171 mayyyybe 172 BUT, we would have to trade over the sellers vwap, earnings vwap, AND a higher high on daily RSI by the end of this week.
Looking at the May2023 OPEX on May19 slightly OTM calls, see what tomorrow looks like.
This is not confirmed yet! If you have a farther exp, I would say this is an opportunity to accumulate. You want to see that rollllling bottom.
If you buy with an exp of 2 weeks, give it a chance to confirm and trap some shorts to go all in.
Stop loss will be discussed in the coming days when we really talk about an entry.
TXN - long positionOn the chart we can see that there are higher highs and higher lows. The RSI indicator crossing above the 50 mark and heading upward, indicates a bullish momentum. We expect that the price will reach the resistance. As it is a strong resistance, we anticipate the price to get rejected. Next, we expect another upsloping attempt towards the resistance level. Invalidation of this theses would be if the price closes below the upsloping trendline.
Triangle in Texas InstrumentsTexas Instruments has been consolidating for almost a year, but now there could be signs of a pending move.
The first pattern on today’s weekly chart is the series of higher lows since October as prices remained below roughly $184. The result is an ascending triangle, a potential bullish pattern that TXN could be trying to escape.
Second, Average True Range tightened to the narrowest since early 2022. Will the squeeze give way to price expansion?
Next, this week brought a lower low than last week and a higher high. That kind of outside candle could suggest buyers are getting active.
Finally, the 10-week simple moving average (SMA) is roughly equivalent to the 50-day SMA. Notice how it’s rising and starting to follow TXN higher -- a potential sign of a bullish intermediate-term trend.
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Texas Instruments: Don’t Rush It! 🐢With a healthy respect, Texas Instruments is advancing toward the resistance line at $158.99 slowly but surely. Soon, the share should climb above this mark and push off into the green zone between $215.90 and $237.98 to complete wave B in green before turning downwards again. There is a 33% chance, though, that the course could shift away from the next resistance line, dropping below the support at $144.49 instead. In that case, we would expect Texas Instruments to develop wave alt.IV in gray in the gray zone between $130 and $107.68 before moving upwards anew.
Texas Instruments (TXN) - Is the stock overvalued?About Texas Instruments
Texas Instruments (TXN) is a technology company that designs and manufactures a wide range of products, including analog and embedded processing chips. The company operates in two segments, Analog and Embedded Processing, and its products are used in various applications, including automotive, communication infrastructure, industrial, and personal electronics.
Strong financial performance in recent years
In recent years, Texas Instruments has seen strong financial performance, driven by strong demand for its products and increasing demand for its embedded processing solutions. The company has consistently delivered revenue and earnings growth, driven by its broad portfolio of products and its ability to continuously innovate and bring new products to market.
Is Texas Instruments (TXN) stock overvalued?
From a technical perspective, the stock price of Texas Instruments has been in an uptrend since the beginning of 2020, and has outperformed the S&P 500 index over that time period. The stock price has consistently made higher highs and higher lows, indicating strong bullish sentiment. In addition, the stock has consistently traded above its 200-day moving average, which is often used as a measure of long-term trend.
The Relative Strength Index (RSI) is a momentum oscillator that measures the strength of a stock's price action. The RSI for Texas Instruments is currently in bullish territory, indicating that the stock is overbought and may be due for a pullback. However, the RSI can remain in overbought territory for an extended period of time, so it is important to consider other technical indicators when making a trading decision.
One potential area of concern for the stock is its valuation. Texas Instruments currently trades at a premium to its historical valuation, which could indicate that the market is pricing in high expectations for future growth. In addition, the stock's price-to-earnings (P/E) ratio is higher than the industry average, which could make it vulnerable to a pullback if the company's earnings growth slows or if the market becomes more cautious.
Conclusion
In conclusion, Texas Instruments has demonstrated strong financial performance and technical strength in recent years. However, investors should be aware of the stock's elevated valuation and consider other factors, such as the company's earnings growth and the overall market sentiment, when making a trading decision. It is always recommended to consult with a financial advisor before making any investment decisions.
Disclaimer
Norvestio AS only offers analysis based on analyst estimates and historical data, and our articles are never meant to be taken as financial advice. It doesn’t represent an advice to buy or sell any stock, and it doesn’t take into consideration your goals or financial position.
TXN Setup for LongTXN Setup for Long
1- Trend is Bullish
2- Price is between strong support 182 and strong resistance 185
3- if price breaks above 185 then can take long entry
4- next resistance is at 190
5- if price come below 182 then next support is at 179
6- Entry Zones:
-Zone1: above 185
-Zone2: 178-179
TXN - Texas instruments (earnings)TXN is trading into resistance. A large wedge pattern has formed. Chopping from the low end to the high end is still favourable until you break out and confirm above.
TXN has a history of strong performance on earnings so i does favour a beat however the question is has the market priced this in already?
Based on the volume trends it looks like there is distribution occurring which could signal a sell after earnings even if the report is good.