Texas Instruments (TXN) was lower Wednesday morning as industrial weakness impacted Q4 results and guidance. Let's check out the charts and indicators.
In this daily bar chart of TXN, below, I can see the price action through Tuesday's close. I have to imagine prices trading around $170 or so. TXN is trading above the rising 50-day moving average line and above the declining 200-day line. Prices need to move below $170 (just a guess) to shake out recent buyers and push into the price gap of last week.
I find it interesting that prices have been strong since late October and the daily On-Balance-Volume (OBV) line has basically gone nowhere but sideways. The Moving Average Convergence Divergence (MACD) oscillator turned lower in early January but recently was reversing to the upside.
In this weekly Japanese candlestick chart of TXN, below, I can see a small gravestone doji as the most recent candle pattern. A gravestone doji is bearish as the name implies. This three-year chart shows a longer term downtrend for TXN. The weekly OBV line shows limited strength the past three months. The MACD oscillator looks like it will stop at the underside of the zero line.
In this daily Point and Figure chart of TXN, below, I can see an upside price target in the $203 area but today's decline has not been plotted yet.
In this weekly Point and Figure chart of TXN, below, I can see that prices have reached a $174 price target.
Bottom line strategy: TXN is going to pull back in the short-run but the bigger question is whether the rally from late October is finished. Too soon to tell.
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