Texas Instruments Close to Resistance

Published on Wednesday, 11 January 2012 18:32 Written by TradersHuddle Staff

New York, January 11th (TradersHuddle.com) - Shares of Texas Instruments Incorporated (NYSE:TXN) are trading very close to calculated resistance at $29.80 with the current price action closing at just $29.11 placing the stock near levels that make it difficult to buy.

Texas Instruments Incorporated (NYSE:TXN) engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company supplies analog technologies, digital signal processing (DSP) and microcontroller (MCU) semiconductors. The Company also operates materials and controls, and educational and productivity solutions businesses.

Texas Instruments' current stock range is defined by current calculated support defined at $27.90 and by the resistance level at $29.80, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Texas Instruments, as the stock is well above support, however, as the stock pulls back towards $27.90 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $29.80 then traders will get an opportunity to enter Texas Instruments stock by establishing a position as the stock moves to a higher range.