Texas Instruments eyeing another new all time high

Texas Instruments (TXN)

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Key Levels (1 to 3 weeks)

Pivot (key support): 124.50

Resistances: 130.92, 138.20/140.60 & 145.00

Next support: 114.10

Directional Bias (1 to 3 weeks)

Texas Instruments, a diversified semiconductor firm that supplies to a broad range of industries from automakers, telecommunications to consumer electronics and it is also the 2^nd biggest weightage component stock in the PHLX Semiconductor Sector Index.

Its share price is now exhibiting positive technical elements where it may surge above its current all-time high level of 130.92 printed on 12 Sep 2019. Bullish bias above the 124.50 key medium-term pivotal support for a further potential up move to target the next resistance at 138.20/140.60 and a clearance above 140.60 sees a further rally towards 145.00 next.

On the other hand, a break with a daily close below 124.50 invalidates the impulsive up move scenario for a corrective decline to test a major support at 114.10 (also the ascending trendline from 24 Dec 2018 low).

Key elements

TXN has continued to evolve within a medium-term ascending channel in place since 29 May 2019 with the lower boundary of the ascending channel acting a support at 124.50.
The upper boundary of the aforementioned ascending channel stands at 145.00 which is also defined by a Fibonacci expansion cluster.
The daily RSI oscillator has managed to stage a rebound from a corresponding ascending support in place since 29 May 2019 low and the 50 level. This observation suggests a revival of medium-term upside momentum.
Relative strength analysis against the market (S&P 500) and its sector (Semiconductor) from the respective ratio charts are suggesting further potential outperformance of TXN.

Charts are from eSignal

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