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Fan Yang

Texas Instruments Inc (TXN) is Another One of My Buy-The-Dip Names

Texas Instruments $TXN is sliding sharply after failing to push above $130 a share. I think it is a buy-the-dip candidate. 

TXN Daily Chart

(click to enlarge)

Bullish Breakout:
- The reason I want to buy on the dip is because TXN recently broke above a key resistance just under $120. 
- This was a consolidation resistance since the start of 2018. 
- It appears that the rally in 2019 has resumed the prevailing bullish trend.
- Thus, the current pullback could be an opportunity to get on the train, or add to your position. 

I entered a position around $119 during the 8/5 session slide, looking for the previous resistance to act as support. However, there was relatively high volatility during this session, as the general stock markets retracted sharply. 
I am freeing up dry powder from lower priority names so that I can add to that exposure if price slides to $110. 

- Around $110, price will be near the middle of the previous consolidation range, and might be supported by a rising trendline.
- I suspect this to be a key support area for the bullish scenario.

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