Semiconductor Stock Builds on Key Technical Support
Semiconductor Stock Builds on Key Technical Support.
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Texas Instruments Inc (NASDAQ:TXN) was last seen up 3.5% at $294.04, extending a bounce off familiar support at the $280 level. The semiconductor name has traded choppily since its June 22 record high of $334.03, but sports a strong technical setup that could push it back toward that peak. Year to date, the equity has been outperforming with a 69.2% lead.
According to Schaeffer's Senior Quantitative Analyst Rocky White, TXN is trading within 0.75 times the 80-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared 16 times over the last decade, after which the stock was higher one month later 88% of the time, averaging a 6.4% gain.
While AI leaders have had a volatile month, TXN is more of an industrial and automotive semiconductor play. Of the 35 analysts in coverage, 18 carry a "hold" or worse rating, leaving plenty of room for upgrades.
An unwinding of pessimism amongst options traders could also support a rebound. Though calls are winning out on an absolute basis, the stock's 50-day put/call volume ratio of 0.75 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 85% of readings from the past year, meaning puts are getting picked up at a faster-than-usual rate.
When weighing in, options look like a good way to go. Texas Instruments' Schaeffer's Volatility Scorecard (SVS) sits at a lofty 99 out of 100, indicating the stock has exceeded options traders' volatility expectations over the past year.
Sinergia Empresarial continuará el seguimiento de esta información sobre semiconductor Stock Builds on Key Technical Support y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.
