New Price Target for Texas Instruments as It Gets Help to Build New Chip Factories

There are reports Friday that Texas Instruments TXN will get up to $1.6 billion from the U.S. government to help it build three semiconductor chip facilities. TXN shares are reacting to the upside early Friday on this news.

Let's check out the charts and indicators.

In the daily bar chart of TXN, below, I can see that prices have been bouncing back from an early August skid to the downside. Prices broke below the 50-day line but have since recovered and are in position to retest the July high. The trading volume increased on the decline and has not (yet) expanded on the recovery. 

The On-Balance-Volume (OBV) line moved higher from February to July before weakening into August. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line but poised to cross back above it.

In the weekly Japanese candlestick chart of TXN, below, I see what could be an "upper level" consolidation pattern as prices have been trading sideways since 2021. TXN is trading above the rising 40-week moving average line. 

The weekly OBV line has moved to the upside since October and suggests a good period of time of more aggressive buying. The MACD oscillator is above the zero line but recently crossed to the downside for a take profit sell signal.

In this daily Point and Figure chart of TXN, below, I can see a potential upside price target in the $233 area. A trade at $212 or higher should refresh the uptrend.

In this weekly Point and Figure chart of TXN, below, the software is generating a downside price target in the $135 area. A weekly trade at $212 or higher should turn this chart bullish.

Bottom-line strategy: Traders could go long shares of TXN only on a close above $212. Risk to $190. The $233 area is my price target for now.

Employees of TheStreet are prohibited from trading individual securities.