Watch Texas Instruments for a Breakout
The stock chart of Texas Instruments (TXN) has been contracting in a large symmetrical triangle for the last two years. It is currently testing an interior resistance level, which if taken out could power a break above the downtrend line of the multi-year triangle pattern and take the stock price considerably higher.
The price contraction can be seen on the weekly chart and is defined by trend lines drawn from the 2011 high and 2011 low, and the 2012 high and 2012 low. After establishing the June low this year, the stock made a higher low, but the $30 level has acted as resistance, which formed an interior rising wedge pattern. The 50- and 200-day moving averages have compressed within this pattern. In this latter stage of the process, the stock price has moved into its upper Bollinger band range, and the money-flow index, a volume-weighted relative strength measure of money flow, has moved above its centerline....197 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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