November 15, 2011
Shares of Texas Instruments (NYSE: TXN) appear to be trading in a bullish pennant pattern on the daily chart. Three rallies ended at lower highs and two declines ended at higher lows since late October.
This comes after a solid rally lifted shares some 26% from its September lows.
TXN will eventually break out of this pattern and typically such patterns break in the direction of the previous trend. In this case the trend was to the upside from early September
TXN is right at the 81.8% retracement level ($31.59) for the entire April to September decline.
If TXN can make a decisive break above $31.59, look for a potential run for the prior highs up at $36.00 a share.