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.
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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.