Texas Instruments Shares Drop 3.33% Following 8.43% Surge as Technical Indicators Signal Correction

Texas Instruments (TXN) closed the most recent session down 3.33%, marking a significant reversal after a prior 8.43% surge. This sharp correction suggests potential short-term bearish momentum, warranting a multi-indicator analysis to assess trend sustainability and reversal probabilities.

Candlestick Theory

Recent price action reveals a bearish engulfing pattern on the 2026-01-07 session, where the body of the candle fully engulfs the preceding bullish candle. Key support levels emerge at $176.88 (2025-12-26 close) and $173.49 (2025-12-31 close), with resistance at $182.10 (2025-12-06 high). The 2026-01-07 low of $184.49 near the 200-day moving average (calculated at ~$178.50) suggests a critical psychological barrier. A break below $176.88 may trigger further testing of the $173.49 support, potentially validating a deeper correction.

Moving Average Theory

The 50-day MA (~$181.50), 100-day MA (~$183.00), and 200-day MA (~$178.50) form a bearish alignment, with the price below all three. The 50-day MA crossing below the 100-day MA (death cross) on 2026-01-05 confirms a medium-term downtrend. However, the 200-day MA acting as dynamic support may delay a sharp decline, creating a potential consolidation zone between $178.50 and $181.50.

MACD & KDJ Indicators

The MACD (12,26,9) crossed below the signal line on 2026-01-05, with a bearish divergence emerging as the histogram narrows despite a price rebound on 2026-01-06. The KDJ (14,3,3) indicator shows an oversold condition on 2026-01-07 (K: 22, D: 28), but the slow stochastic remains in neutral territory. A close above $185.71 may trigger a bullish crossover in the KDJ, suggesting a short-term rebound could materialize if volume confirms.

Bollinger Bands

Volatility expanded on 2026-01-06, with the 20-period Bollinger Bands reaching a width of ~$12.43. The recent close at $185.71 sits near the lower band, indicating oversold conditions. A reversal above the middle band (~$186.00) would suggest decreasing volatility and potential consolidation. The 2025-12-26 high of $178.52 marks a prior contraction point, hinting at a potential breakout target.

Volume-Price Relationship

The 2026-01-07 session saw elevated volume (8.34M shares), validating the bearish breakdown. However, volume has trended lower since late December, suggesting waning short-term selling pressure. A surge in volume on a rebound above $185.71 would strengthen bullish conviction, while sustained low volume below $178.50 may confirm a deeper correction.

Relative Strength Index (RSI)

The 14-period RSI stands at ~28 on 2026-01-07, entering oversold territory. A close above 35 would indicate a potential short-term bounce, though the RSI remains below 50, reflecting bearish momentum. A divergence between RSI and price (e.g., higher lows in RSI while price makes lower lows) could signal a trend reversal.

Fibonacci Retracement

Key Fibonacci levels from the 2025-08-01 low ($206.49) to the 2025-09-03 high ($200.07) include 23.6% ($194.00), 38.2% ($189.00), 50% ($187.50), and 61.8% ($185.00). The current price near $185.71 aligns with the 61.8% retracement level, suggesting a potential support cluster. A break below $185.00 may target the 78.6% level at $181.50.

Confluence and Divergences

The 61.8% Fibonacci level coincides with the 200-day MA and Bollinger Bands lower boundary, forming a high-probability support zone. However, the MACD divergence and RSI oversold reading suggest a short-term rebound may materialize. A failure to hold $178.50 would trigger a deeper correction toward $173.49, aligning with the 2025-12-31 low.