TXI, Texas Industries Inc.

TXI dec 24 2012txi 24 dec 2012 s

They are in building materials and fixtures, not to be confused with Texas Instruments (TXN). The /E is a modest 116 and 13.4% of stock is held in short positions. The area within the blue rectangle was in one of our major financial newspapers (Dec.22). The call is for the stock to rise to $54 or $59 on the basis of point and figure charts, but considering the long trading range between the blue horizontal lines the stock could go a lot higher. As it makes little sense to recommend a stock that has already traded at $52 if the target is only $54, presumable there is confidence that the stock does indeed go a lot higher. This outlook is negated only with a decline below $40/41.

On an EW basis the stock could go to the upper trend line of the in the larger B, at $55 max, but thereafter it should be downhill. The RSI and MACD also support this view. Time will tell.