Technical Analysis: Texas Instruments Incorporated

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.

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.