Technical Analysis: Texas Instruments Incorporated

Apr 04, 2021 | Using a Channel pattern to make money off Texas Instruments

Texas Instruments Incorporated (TXN)

Entry Price/ Stop Price/ Target Price- 192.16/ 188.32/ 207.53

Time Frame- 3-4 Weeks

Company Description
Texas Instruments (TI) is a semiconductor design and engineering firm that specializes in analog integrated circuits (ICs) and embedded processors. They are known for their TI DLP technologies and educational technology. Analog goods cross the difference between the physical and digital realms by transforming signals such as sound, intensity, temperature, humidity, and light into digital 1s and 0s that electronic machines can interpret, and then turning that data back to the knowledge we can communicate within the real world.

Thesis
TXN is another large semiconductor producer and is involved in both the analog and embedded chip market controlling up to 17% of the market, with the drastic shortage of embedded chips TXN has grown this division of its business by 2.2% from last year. President Biden is signing a bill that aims to reduce this shortage through subsidies and incentives totaling up to $35 billion which will prove to be a catalyst for increasing stock price. 

Technical Analysis
We just saw a golden cross (100 MA crossing over the 150 MA) on the 1 hour chart. From an RSI prospective, we’re approaching overbought levels- which is also in line with the px approaching the top range of our channel. If we’re able to break through our upper-bound and find new support in the low 190s then we can consider opening a position. However, if we shoot back down to the bottom range of our channel we’ll need to wait for a rebound before entering the position.

Weekly Swing Trades

PNRG (Prime Energy)

October 2, 2022

Entry Price:

80.62

Stop Price:

76.85

Target Price:

88.04

Time Frame:

1 Week Hold

Expecting a short-term bump after a recent OPEC+ announcement regarding the a supply constraint to oil. The constraint would result in ~1M less barrels of oil per day, which should cause a price jump. Low RSI and bouncing off our 250 day moving average, both hallmarks of a good swing trade.

DV (Doubleverify)

October 2, 2022

Entry Price:

27.75

Stop Price:

26.75

Target Price:

29.00

Time Frame:

3 Week Hold

Using our moving averages heavily on this swing trade, look for continued strength as we try to notch out a 6-8% gain. Specifically, we are taking advantage of of a recent cross over in the 50 day moving average. Last week closed down, so wait for confirmation of a reversal.

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Market Performance- Week of 09.25.2022

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Weekly Review

Market Performance- Week of 09.25.2022

Recent Winners

SBUX (Starbucks)

SBUX (Starbucks)

Entry Price:

85.00

September 11, 2022

Price at High:

89.90

Return for Members:

5.76%

Timeline:

2 Month Hold

Strong momentum over the last few weeks. Watch for a mean reversion, but if moving averages stay consistent look for an early play to open the week.

PNRG (Prime Energy Resources)

PNRG (Prime Energy Resources)

Entry Price:

83.20

September 4, 2022

Price at High:

100.00

Return for Members:

20.19%

Timeline:

3 Week Hold

PNRG had a drawdown to historical levels of support (around the 100 day moving average). Looking to make an entry in the coming days as we also have macro tailwinds with the energy crisis in Europe.

PYPL (Paypal)

PYPL (Paypal)

Entry Price:

87.00

August 28, 2022

Price at High:

103.00

Return for Members:

18.39%

Timeline:

4 Week Hold

Playing off the dip in June, we're starting to see momentum as the 50MA is crossing over the long-term averages. Look to for momentum to continue and an early entry on Monday.

Recent Watchlist Winners

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