Texas Instruments Doesn't Add Up

Texas Instruments (TXN) posted better-than-expected earnings, guided higher, and the stock is selling off in today's session. This kind of price action in the face of seemingly good news is, obviously, bad news. The technical picture on multiple time frames had been deteriorating coming into this earnings month, and the damage continues to build.

Texas Instruments (TXN) -- Weekly Source: StockCharts.com View Chart » View in New Window »

The weekly chart shows two distinct periods of trend and consolidation, which took the stock from its September 2011 low to its 2012 high. The initial move higher was contained by the 200-day moving average and the 62% retracement level of the 2011 high and low. The stock price pulled back to the 38% retracement level and then early this year broke above the 200-day average and began the second phase of the advance....318 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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