February 8, 2011
Shares of Texas Instruments Inc (NYSE: TXN) continue to move higher after news of the company’s purchase of acquisition of National Semiconductor Corp. (NYSE: NSM) in an all-cash deal worth $6.5 billion last Monday was accepted by traders.
The $25-a-share offer has been approved by the boards of both companies and NSM was seen as the huge beneficiary of this deal. Share prices of NSM skyrocketed.
But there is profit to be made in TXN as well. Several days ago we wrote, “If TXN can close above $34.96 in coming days, that would be a bullish signal to traders and with Monday’s announcement, the likelihood of a rally in coming weeks would be high.”
We now have the breakout close. On Thursday, April 7, TXM closed at $35.24.
We are looking for this widely traded stock to make a run for, and test, its prior highs at $36.56.
The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy holds a position in Texas Instruments.