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After completing the bearish cycle from November 2024 at the extreme of a double-three correction, Texas Instruments has surged by over 45% from the blue box shown in the chart below. This rally is re-establishing the all-time bullish cycle, and specifically the cycle from October 2002. Buyers are expected to buy the dip as this upside momentum remains favored. 

Texas Instruments (TXN) is a global semiconductor company known for designing and manufacturing analog and embedded processing chips. With products used in everything from industrial equipment to personal electronics, Texas Instruments plays a critical role in powering modern technology. Its consistent innovation and strong market presence make it a closely watched stock in the tech sector.

Texas Instruments completed a long-term grand supercycle degree wave ((II)) in October 2002. At that low, it barely traded for $13. Meanwhile, the next two decades saw an astronomical rise in the stock price as the grand supercycle degree wave ((III)) emerged. Wave (I) of ((III)) finished in August 2007 at $39.60. Thereafter, a pullback for wave (II) followed, as the stock barely reached $13.40 in December 2008.

Wave (III) started in December 2008, and the stock established a bullish sequence after breaking its previous record high $99.80 (the March 2000 peak). The stock established a new peak at $202.20 in October 2021. At the peak of October 2021, the stock established wave III of (III) of ((III)). Afterwards, it started a pullback for wave IV that lasted until October 2023. However, it then rallied from that low and established a new high of $220.38 in November 2024.

Texas Instruments Elliott Wave Analysis – Daily Chart 

(Click on image to enlarge)

The daily chart above shows the record high of November 2024 as the wave ((1)) of I. Afterwards, a pullback started and completed a 7-swing setup at the blue box. In a bullish sequence, buyers often buy at the extreme of a 3/7/11 swing pullback. The extreme is illustrated with a blue box, and this is where we expect the next price pivot to be.

The stock went deep into the blue box area and then rallied to show completion for wave ((2)). In addition, the response rally from the 139.95 pivot shows an emerging impulse wave structure with an extended third wave. It appears the most recent dip is wave 4 of (1), and it may soon finish a double-three structure on the shorter cycles before returning into upside territory.

With this clear sequence, we will likely remain buyers. The next opportunity for buyers will be at the extreme of wave (2). Eventually, the wave ((1)) high will be breached to establish a new record high. Thereafter, buyers may want to continue to buy 3/7/11 swing pullbacks from the blue box area.

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