Himax Stock (NASDAQ:HIMX) Chart Is Setting Up to Send Prices Soaring

Buz Investors Himax Stock (NASDAQ:HIMX) Chart Is Setting Up to Send Prices Soaring

HIMX Stock: This Sector Is on Fire

Buz Investors Himax Stock  Semiconductor stocks are all the rage and investors are always on the lookout for the best semiconductor stocksHimax Technologies, Inc.(ADR) (NASDAQ:HIMX) stock is a great play to exploit the hot money that is flowing into this sector.

 




OTHER STORIES BUZ TRADERS FOLLOW

Himax Stock

When a sector Himax stocksuch as this catches a bid, it creates a rising tide, and that rising tide serves to raise all boats within that sector. Taking this notion of a rising tide and combining it with bullish constructive price action creates an environment where a stock can really soar. The Himax stock chart is in such a position, with Himax stock currently trading at $7.66, and the price action is now suggesting that HIMX stock is ready to move.

My excitement surrounding HIMX shares began to develop after this downtrend was finally broken when price closed above it. This price action is highlighted as a “breakout” on the chart above, which illustrates the moment it occurred. The breakout indicates that the bearish trend towards lower prices had finally concluded, and this now opens the door for a new bullish trend to develop.

This triangle is three years in the making, and large technical trading patterns are more significant, because they translate into equally large and lengthy reactions. The power that is generated from this pattern is a result of the converging trend lines. These trend lines cause a confinement of space, which causes momentum to build. This momentum is finally released when price exits the pattern.

This triangle is still in development and the low that was generated in 2017 bounced off support that was outlined by this descending triangle. This level also coincided with the trend line that acted as a resistance level from September 2014 to November 2015. The bounce off support is referred to as a “backtest” and it is not uncommon for price to return to a previous level of resistance and test it from above. These two coinciding levels indicated that support was strong at the $5.00 level, and the bounce that followed was no surprise.




Click here for reuse options!
Copyright 2017 Investors Buz

READ  FOREX INVESTORS BUZZ Retire on This One Hot Stock?

Jadtecnic

Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.

Leave a Reply

Create Account



Log In Your Account