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.
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