HIMX trade ideas
Himax is way overbought HIMX is up big along with the rest of VR related stocks due to the release of Oculus. I think it is way overbought at this point. HIMX may very well hover between $10 and $12 but I'd like to see it come back down around $9.25 and hold support.
Red- Resistance (Overbought)
Orange- Past resistance and potential new line of support
Green- Possible buy targets
Little further to goOriginal thought was wrong as bounce was promptly rejected at trendline. Bullish Bat looks to possibly be in play here so I'm looking for a good bounce from $5.86-$6.12
HIMX Oversold at bottom of descending triangleWhat i'm looking for with HIMX on the week of 4th May 2015:
Technicals:
- Himax is currently at the bottom of a descending triangle.
- MACD is showing positive divergence
- RSI is also showing positive divergence.
- HIMX initial rally to ~16.50 was about 19 degrees steep.
- HIMX rallies inside the descending triangle were somewhere between 40-60 degrees.
- Monday May the 4th could give a signal to go long to the top of the descending triangle.
Earnings:
- Earnings have so far matched estimates, or were slightly above/below estimates.
- Most earnings misses had relatively little impact on price.
T1 May15-Jun15: 8.22, should be an easy target at only 23 degrees!
T2 May15-Dec15: 12.70, only if it breaks the descending triangle resistance
Do Not Chase Himax Technologies (NASDAQ:HIMX), This Is WhyYesterday, shares of Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) had a strong performance in a weak market. This price action is a sign of relative strength for the stock. At this point in time, many amateur traders and investors are chasing Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), as it has moved from a low of $5.70, to a closing of price on Monday of $9.82. However, the smart investors and traders think different. As the general population often looks to chase a strong move, or gets sucked into the hype which lags the real price action of a stock; the professionals who do this for a living as we do, take a different approach.
The first thing to do is start looking for levels of resistance to either take profits if already in the trade, or to find resistance points at which to sell short the stock and profit as it pulls back. Let's take a deeper look into the HIMX chart...
I isolated a few levels on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) that can be utilized to take profits, or with the right pattern sell this equity short. As seen on the chart below, please note that Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) is already nearing the first resistance point at $10.05, the second resistance level will be at $10.91, and finally the third and major resistance level will be at $12.15.
If you're already long Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) those are levels to watch for signs of weakness and take some money off the table, while trailing your stop. If you're not already holding this stock, and you are looking for a shorting opportunity, the best levels to do so will be the 2nd and 3rd levels mentioned previously, depending on how Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) gets there. Remember, that for these levels to be strong and give us a high rate of success, there are factors such as; Pattern and Time that must align perfectly with Price. Without considering these factors, the levels may not present as high profit potential as they otherwise would.
I will be monitoring the price action in Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) and will alert our members of a possible trade if we get the right factors in place. Being patient and only taking the best set ups is what allows us to maximize profit and have big gains in trades, just like this recent 9% gain in Yahoo! Inc. (NASDAQ:YHOO) which was given to members along with precise entry and exit levels live as we were trading it. In the same manner of which we give all of our member trade alerts, we gave everyone time to enter this trade or take profits on this Yahoo! Inc. (NASDAQ:YHOO) as seen here. Be ready for the action join us here at the Elite Round Table and don't miss out on the next big trade.
HIMX - Update: Cup-n-Handle, Double Bottom, Fibs and moreJust 3 days ago published a chart on HIMX. From there stock went down and then up more then 10% to exactly the 0.38 fib line. Plotting fibs on HIMX shows that it just loves it - on an up trend lookout for 0.618 fib - seems to be a good place to retract, just like 0.38 and 0.5. Also, i missed on the last chart the current up-trending channel. Connecting recent tops, and drawing a parallel to the previous bottom one can then see why the stock dropped and stopped 2 days ago.
Still a possible double bottom or cup and handle, but with other technicals i would warn - RSI has a divergence, MACD and Momentum is already on tops - though, we have room to grow, but not for long. Only exceptional news can drive it to 0.618 (~12) and that would be that Google added a stake in the company. I would assume a jump out of the trend, then a retraction if so, but this is speculative. I left some investments in HIMX, and took some out today as well. maybe a gap filler tomorrow - markets seem to be going lower (check today's Spy predictions, many see some road down ahead), just enough to go off the fib line to the support of the trend, and then rush up with technicals cooled.
Personally, i am long on this one - it has too much attention to it already with google glass, so if not google, someone definitely will join in sooner or later. Plus the recent sell-off was extreme and mostly based on rumors and hunch that google wil switch to other supplier - none of the rumors have been confirmed - last year these rumors gave a great entry point.
HIMX ObservationsWell, its an explosive stock - goes drastically up and down on news and soon i expect a new direction to be revealed.
First off - fib levels. From the lowest to the highest points the price retraced to 0.62, and from the top to the recent low it retraced back up to 0.38 (at the moment) - seems that the stock favors these levels. Meanwhile, somewhat of a cup and handle formed - and although the run from here is quite possible given that there are rumors of HIMAX used in Google glass and other that popped up in the recent 2 days (well, these news drove the stock up in 2013, subjectivity drove it down and there i went in on the stock to sell it up top once the rumors confirmed). i believe himax is used in google glass, and seeing Sony rival product, GG is way better option. News can support the rally (and although no news on partnerships with other major producers, i expect them to be interested in HIMAX...or Google snatching a larger part of it), the price seems to be in overbought ranges with negative divergence on both CCI and RSI now. MACD is turning down - so this would be a hard play for buyers, but of course it can be another autumn run just like in 2013. In any case, short term i would hold (less risk - see if you want to sell some for gains), long term i would hold or buy on dips. Wearable is the future as all the major players are in - Google, Sony, Nike, Apple. Its vital to get the best players in the field on your team. But be cautious - this stock is as risky and volatile as it gets.
HIMX Way OversoldShares of Himax have been pushed downward into oversold territory due to downgrades and fear from investors regarding the release date of Google Glass. I believe it may have bottomed out at $6.62 earlier this month and am now looking for a continued reversal back to the $9 to $10 range and possibly higher. Not only because Glass is now available for sale, but because Himax is a strong company with a market cap of $1.2 billion and is showing consistent year-over-year growth. This stock is currently trading at a very cheap valuation.
For my complete opinion on Himax visit www.fdrinvestmentgroup.com
Himx price movementExtrapolate this anyway you want, this will give you an idea of how price has moved to date between these levels. Notice how previous highs became strong support, which is now 11.50 but i'm looking for a 12.20 entry to scale back in
HIMX TrendLong on HIMX. Google glass play. Looking forward to trending continuing in 2014 when glass is likely to be released
HIMXHIMX breaking today 11.5$ area which was strong resistence on supporting vol.
last move down was 50% correction so next target will be fib extention at 13.5$
1st target 12.5$
stop below open gap at 10.7$
GL:
Himax Looking GreatI went long some HIMX Mar 2014 12 Calls this morning. The daily for the past couple days is setting up a great cup and handle pattern with a flat top pattern as well around 11. The good volume today rising RSI and MACD look to be a great setup. At these new highs, the stock may trade sideways to down for a little but will probably shoot up after the sideways action with a measured move of $12 from the bottom of the trough to the top of the cup.
