Stock of the day: Texas Instruments
04 July 2024
Texas Instruments (TI), a global technology company, is known for its innovation in the semiconductor and electronics industry. They design and manufacture semiconductors and various integrated circuits, which are crucial components for a wide array of electronic devices. Their products serve sectors such as automotive, industrial, personal electronics, and communications equipment.
Currently, Texas Instruments is exhibiting a compelling technical setup. The stock is forming a symmetric triangle, also referred to as a pennant, marked by green lines on the chart. This pattern is typically a continuation pattern, suggesting that the prevailing trend before the formation will resume once the price breaks out of the triangle. In early July, the stock price rebounded off the lower boundary of the triangle. Yesterday's session concluded with a test of the upper boundary, indicating that a breakout is imminent.
However, with the American markets closed today for Independence Day, any significant movement will likely be postponed until Friday. Given the positive sentiment in global indices and the bullish trend preceding the formation of the pennant, my outlook on Texas Instruments remains optimistic. I anticipate a breakout to the upside, reinforcing the continuation of the bullish trend.