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3 Big Stock Charts for Thursday: Cree, Inc. (CREE), Diodes Incorporated (DIOD) and Texas Instruments Incorporated (TXN)

The semiconductor sector continues to be one of the most divided groups of technology stocks. As of Wednesday, more than half of the sector was trading below key trendline support along with other bearish short-term chart indications. Despite the negative backdrop, there are a handful of semiconductor stocks that remain technically strong and worthy of attention from investors looking for bullish exposure in the sector.

Today’s three big stock charts look at the technical pictures of Cree, Inc. (NASDAQ:CREE), Diodes Incorporated (NASDAQ:DIOD) and Texas Instruments Incorporated (NASDAQ:TXN) as these companies are showing signs that they are ready to climb higher against the bearish headwinds of the market.

Cree, Inc. (CREE)

Cree, Inc. (CREE)
Source: Chart courtesy of

Best known for their LED lighting products, Cree also provides products to the semiconductor sector.  Last week, the company released earnings results while lowering its forward guidance. Shares reacted with volatility that formed a bottom for the shares that are now trading almost 10% higher and showing potential for more if they pass a few technical tests.

  • After its earnings report, CREE shares formed a double bottom technical pattern with the first of these bottoms happening in April. Double bottoms have been quantified as one of the most reliable bullish technical patterns. This puts the stock into bullish rally mode over the next 4-6 weeks.
  • According to the MACD for Cree shares, the stock is gaining momentum on higher than average volume. This indicates that the stock is attracting a crowd of bullish traders that should continue to fuel higher prices.
  • CREE stock will have to pass a test as it approaches the $24.50 price. This level represents past resistance/support as well as the top Bollinger Band’s location. A break above this mark will cause a volatility rally that will target another 10% move higher.

Diodes Incorporated (DIOD)

Diodes Incorporated (DIOD)
Source: Chart courtesy of

Diodes is one of those companies that many investors may not know operates in the Semiconductor group. The company is diversified in the industry offering products for consumer, industrial and communication applications.

The DIOD chart is showing signs that a volatility rally is ready to move shares higher over the short-term.

  • Diodes stock is attracting buying volume over the last week as the stock was approaching its chart resistance at $27.50. DIOD stock has now cracked this level, indicating that a round of bullish traders will gravitate to the stock as buyers.
  • The move above $27.50 also serves to break above Diodes’ top Bollinger Band. Volatility traders will fuel a surge in the stock should the stock finish the next day’s trading above this top band.
  • The MACD indicator for Diodes stock shows growing momentum on this break higher, indicating that a shift higher in the stock’s trading range is likely with a target of $30.

Texas Instruments Incorporated (TXN)

Texas Instruments Incorporated (TXN)
Source: Chart courtesy of

Texas Instruments has been treading in ranges for almost all of the last year.

TXN stock has seen these ranges trade with increased volatility, meaning the nimble traders out there should love an opportunity when the stock’s chart shows a pending move, as it is now.

  • Texas Instruments shares recently bounced from their 50-day moving average. The strength shown by this trendline, which is transitioning into a bullish outlook, suggests that traders are taking advantage of the improving technical backdrop to move into TXN stock.
  • Shares of Texas Instruments are now fighting with the top of their recent range at $82.50. A break above this technical hurdle will fuel another short-term rally with an initial target of $85.
  • According to the RSI and MACD for TXN shares, there is plenty of room for higher prices before registering readings that will cause the stock to move into overbought territory. This means that traders have to worry less about selling pressure from profit-taking as the stock moves higher.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

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