Texas Instruments Extends Winning Streak and Powers Higher

NEW YORK (TheStreet) -- Texas Instruments  (TXN) closed on Monday with its sixth straight gain.The stock gained more than 1.8% to start the week as it stretched its rebound off last week's low to 6%.

This breakout-type move has left behind solid support near last week's high at $54.60. Texas Instruments has now broken through an overhead trend line that linked its April/May highs, setting the stage for more upside.

Providing a spark for Monday's high-volume surge was the company's announcement of the availability of its LaunchPad development kit. The added bullish interest pushed volume well above average.

Combined with Texas Instruments' high positive trade on Friday, the stock experienced its two most aggressive accumulation days since shortly after the major bottom back in October. This puts shares in a very strong position as it begins to leave behind major support near the 200-day moving average.

The next hurdle for Texas Instruments will be its initial June/May highs between $56.35 and $56.60. Once past this mid-term supply area, the stock will enter the huge breakdown gap left behind back on April 23. As shares near $58, this high-volume downside gap will be filled. A pullback from this area is likely and will provide a low-risk buying opportunity for investors.

In the very near term, the $54.60 area, last week's high, should supply solid footing. A close back below the 200-day moving average at $53.45 would indicate that Monday's trend line break has failed.

Click here to see the below chart in a new window.

At the time of publication, Morrow was long TXN.

More from Opinion

Tuesday Turnaround: Micron, Autonomous Driving, and J.C. Penney

Tuesday Turnaround: Micron, Autonomous Driving, and J.C. Penney

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Cable Stock Investors Should Keep an Eye On Wireless Broadband's Rise

Trump Blinks on China Trade War That's Looking Harder to Win

Trump Blinks on China Trade War That's Looking Harder to Win

Monday Madness: GE, China, and Micron

Monday Madness: GE, China, and Micron

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly