Texas Instruments Jumps 3.53% to $199.21 as Technicals Signal Bullish Momentum

Texas Instruments (TXN) advanced 3.53% to $199.21 in the latest session, marking its second consecutive daily gain with a cumulative 4.58% rise over this period. This upward movement warrants examination through multiple technical lenses as follows.
Candlestick Theory
Recent price action shows a bullish engulfing pattern formed between June 5 and June 6, where the June 6 candle ($192.26–$194.84) completely overcame the prior day's losses. This was followed by a strong white candle on June 9 ($193.465–$200.43) that closed near its high, confirming bullish sentiment. Immediate resistance converges at the psychological $200 level, which capped the June 9 advance, while support emerges near $192.42 (June 6 low) and $187.28 (May 12 reaction low). A sustained break above $200 may trigger further upside, whereas failure could retreat to test $192 support.
Moving Average Theory
The 50-day moving average ($189.50) crossed above the 200-day MA ($180.80) in Q1 2025, establishing a long-term golden cross. Currently, the price trades above all key MAs (50-day: $189.50, 100-day: $185.20, 200-day: $180.80), confirming a bullish posture. Short-term momentum is reinforced by the 50-day MA acting as dynamic support during the May pullback. The stacked alignment (50 > 100 > 200) signals sustained bullish trend strength.
MACD & KDJ Indicators
The MACD histogram has turned positive after a bullish crossover near the zero line, signaling building upward momentum. Concurrently, the KDJ oscillator exited oversold territory (<30) in late May, with the %K line (76) crossing %D (70) upward in the latest sessions. This confluence suggests strengthening bullish momentum. However, KDJ's approach toward overbought territory warrants monitoring for potential divergence, which could precede short-term consolidation.
Bollinger Bands
Bollinger Bands contracted sharply in late May, recording the narrowest width since Q4 2024. This volatility squeeze resolved with a decisive upside breakout, propelling prices from the lower band toward the upper band ($201.50). The June 9 close near the upper band indicates bullish momentum, though this positioning after rapid gains may imply short-term overextension. Sustained closes above the 20-period midline ($195) validate the breakout's integrity.
Volume-Price Relationship
Recent gains are supported by rising volume, with June 9 turnover (6.87M shares) exceeding the 20-day average. This volume confirmation lends credibility to the breakout. Notable accumulation occurred on May 12 (16.21M shares, +8.71%) and June 3 (5.61M shares, +2.10%), establishing volume-based support at $187.28. The absence of climactic volume during the $200 test suggests room for further upside if buying pressure persists.
Relative Strength Index (RSI)
The 14-day RSI (63) has exited the neutral zone (45) and now approaches overbought territory. While not yet at cautionary levels (>70), this ascent from oversold (<30) in mid-May confirms strengthening momentum. However, RSI’s lagging nature means it may not yet reflect potential resistance near $200. Traders should watch for bearish divergence if prices make new highs while RSI fails to confirm.
Fibonacci Retracement
Applying Fibonacci to the April 22 trough ($146.76) and January 23 peak ($200.61), key levels emerge. The recent rally surpassed the 61.8% retracement ($180.10), turning it to support. The 78.6% level ($192.50) now acts as immediate support, with the $200.61 swing high representing the next resistance. The decisive break above $192.50 signals bullish conviction, but profit-taking may occur near the full retracement at $200.61.
Conclusion
Texas Instruments exhibits broad technical strength, with moving averages confirming a bullish trend and momentum indicators supporting upside potential. Confluence exists at $192.50 (Fibonacci 78.6% and volume-based support), which now serves as a pivotal level. The $200 resistance remains the critical barrier, where a confirmed breakthrough would likely accelerate buying. While short-term indicators suggest possible consolidation after recent gains, alignment across volume, MACD, and moving averages favors continuation of the primary uptrend. Divergence remains absent across oscillators, though RSI’s approach toward overbought territory warrants vigilance at current levels.