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.

 




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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.




Himax Technologies, Inc.: This Chart Shows MASSIVE Upward Swing HIMX Stock

Himax Technologies, Inc.: This Chart Shows MASSIVE Upward Swing HIMX Stock

Himax Technologies, Inc.: This Chart Shows MASSIVE Upward Swing HIMX Stock

Himax TechnologiesHIMX Stock: Bullish Tailwinds Behind the Buzz

Himax Technologies, Inc. (NASDAQ:HIMX) stock is getting some buzz on a few message boards, so I decided to take look and see if the price charts can give me any insight into what is causing the buzz.

When I do due diligence on a company of focus, I start with looking at multiple perspectives. Imagine looking through a telescope or binoculars; one normally starts from a distant view, adjusts focus, and then zooms into the object. This process helps in pinpointing the object, and deciphering a clear image. This.

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The following is a five-year chart of HIMX stock.

Himax Technologies, Inc. NASDAQ Chart

Chart Courtesy of www.stockCharts.com

Fibonacci retracement numbers (highlighted in green) are a very popular tool used by many technical traders. This tool is used to identify counter-trend price objectives. In theory, when a stock pulls back from a primary trend, shares will retrace approximately 50–62% of the primary move. This zone usually offers support, as traders will be eyeing this area as an opportunity to enter long positions or cover short positions. It is normal to see chart congestion in this area. Traders refer to this zone as trading into the box.

On August 12, HIMX broke above that downtrend and signalled a change in trend. The breakout is suggesting higher prices as the dominant trend from 2013 reasserts itself. The primary price objective of this trend reversal is the March high at $11.84. A close above this level would signal a move higher to test the all-time high around $14.00.

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