Semiconductor stock Texas Instruments Inc (NASDAQ:TXN) was last seen down 3.9% at $188.09 as it heads for its sixth-straight daily drop. The shares have been struggling to recover from their late-July post-earnings bear gap, though the $180 level has kept losses in check. For those betting on a short-term bounce, however, the recent pullback has the stock flashing a historically bullish signal.
Per Schaeffer's Senior Quantitative Analyst Rocky White, TXN is within 0.75 of the 100-day trendline's 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. This has happened five other times over the past three years, after which the equity was higher one month later 100% of the time, averaging an 8.3% gain. A move of similar magnitude from the stock's current perch would put it at $203.88.
When weighing in on Texas Instrument stock's next move, options look like a good way to go. Options traders are pricing in low volatility expectations at the moment, per TXN's Schaeffer's Volatility Index (SVI) of 28%, which ranks in the low 7th percentile of its annual range.
