🟢 Bullish Reversal Pick: Texas Instruments (TXN)
Why TXN Could Reverse Higher
- Oversold Bounce Potential – TXN has been under steady selling pressure since late July, falling from ~$200 toward a key support zone near $188–190 (May swing lows and 200-day moving average).
- Candlestick Support Signal – Today’s intraday action shows price defending the $190 area, with a long lower wick forming—suggestive of buyer interest stepping in at support.
- Momentum Indicators Turning – RSI is rebounding from oversold levels (~33), and MACD histogram has started contracting, hinting at a shift in momentum.
- Sector Rotation – The semiconductor sector has been volatile, but recent market breadth in chip stocks suggests rotation into laggards like TXN could trigger a multi-day to multi-week bounce.
Swing-Trade Ideas
Equity Long:
- Entry: Buy if TXN holds above $190 or on a breakout over today’s high (~$192.50).
- Stop: Below $188 (just under key support).
- Targets:
- First target: $198 (minor resistance and July pivot)
- Stretch target: $204 (June highs)
Options – Bull Call Spread:
- Buy the $195 call, sell the $205 call (October expiry).
- This limits capital at risk while targeting a controlled upside move.
Trade Overview Table
| Ticker | Direction | Entry Trigger | Stop Level | Targets |
|---|---|---|---|---|
| TXN | Bullish | Hold > $190 or BO > $192.50 | < $188 | $198 → $204 |
⚠️ Risk Management Notes
- Confirm reversal with a close above intraday resistance and ideally a volume spike to validate buyer conviction.
- Be mindful of sector-wide news—TXN often moves in sympathy with other large-cap semiconductors.
- Consider scaling out partial profits at first target to lock in gains.