Sector performing strong
-Long term trend is bullish with strength slightly weakening but still in uptrend...consolidation
-intermediate time frame showing a nice flag forming after that sharp quick advance finding support in the 80.18 area
-relative strength is slowing showing a nice pullback
-the real tell is the obv which is showing the positive volume...
Been following TXN since Feb 2016 - Seems to be a solid company making semi-conductors, going to start buying and stacking :) We see that it has pretty much bounced off the 50 day MA for the past year, so I'm confident they will continue to perform.
Trade Setup for TXN:
Entry: After a close above $75.25
Stop-Loss: Start @ $74.00 and trail the stop as TXN moves up
Target #1: $77.25. 127.2% extension. Take 50% off the table to lock in profits
Target #2: $80.47 161.8% extension. Take 25% off and tighten stop-loss.
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TXN has built momentum for the last 10 years and is finally breaking out of an old top established back in 2000. The sector has been performing strongly and is expected to continue.
Strong bullish momentum will bring a breakout above $75. Target 1 is $97 with T2 @ $125.
Accumulate on any dips for smaller timeframes, such as daily or weekly.
After breaking a year long resistance at 60, we finally see a strong breakthrough. The market feels overbought and we could see a correction down to 66 filling the gap, which could also be a good entry. Either way, a break of this basing formation can give a solid risk/reward trade
