Don't Ignore This Chart!

Texas Instruments Challenges Highs and Sports a Strong SCTR


Texas Instruments (TXN) is leading the market with a strong StockCharts Technical Rank (SCTR) and the stock is consolidating near its 52-week high. TXN is part of the semiconductor industry group and the technology sector, both of which have been leading the market lately. On the price chart, TXN broke two resistance levels in October and then gapped to the upper 50s. The stock recorded a new intraday high in late October and then embarked on a consolidation, which looks like a triangle. A consolidation after a sharp advance is normal, and bullish. The consolidation allows the stock to work off overbought conditions and prepare for the next leg higher. A move above 59 would break triangle resistance and signal an end to the consolidation. 

The indicator window shows the StockCharts Technical Rank (SCTR) moving from relative strength (green) to relative weakness (red) and back to relative strength (green). The horizontal lines are set at 40 and 60. A break below 40 signals relative weakness and the stock is considered relatively weak until a break above 60. A break above 60 signals relative strength and the stock is considered relatively strong until a break below 40. The green zone marks the 40 to 100 range (relative strength) and the red zone marks the 0 to 60 range. The SCTR is comfortably in the green zone and this points to relative strength.  You can read more about the SCTRs here or see a complete table ranking large-cap stocks here. 

Thanks for tuning in and have a good day!
--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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