TXN Texas Instruments Sideways Symmetrical Triangle Gap

TXN Texas Instruments daily chart ahead of earnings after the close today. Sideways symmetrical triangle in place so a break out will occur from the top or bottom rail most probably upon the release. Stepping back, the green, red and blue lines clearly show how a nimble divergence trader makes money, pinpointing each short term top with the negative divergence profiles. 'Texan', as the hip traders call it, topped in early March and has been rolling over ever since.

During the last two days you can see the fight it has with the 50 day MA at 34.94, call it 35, and price is losing. The 20 MA is under the 50 MA which is bearish. Many times the initial move out of these triangles is a fake out and price will reverse and travel back thru the triangle to exit the opposite side. The interesting aspect of this chart is the unfilled gap at 35.5. Once this is filled the long term weakness can come in and continue to roll TXN over moving forward.

Thus, for the earnings, they will probably beat, and guidance should be good, this will provide a price move that does regain the 50 MA at 35, and then the gap fill at 35.5, then, the indicators should be negatively diverged over the three week time frame (see the previous price high at 35.3-ish), and price will roll over again. Thus, earnings should be happy today, projection is price to fill the gap at 35.5-35.8, then roll over and target 33 as the days and next couple weeks play out. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.