Short-term Trading Success, Bigger-Picture Prospects for HIMX
by Mike Paulenoff
October 3, 2014 • 3:43 PM EDT
On Monday, Mike added Himax Technologies (HIMX) as a short-term trade set-up at around 9.55 and exited the following day (+5% gain) when his raised stop was hit at 10.07.
Mike re-entered the trade on Wednesday at 9.72.
While trading the short-term swings, Mike indicated on Monday why the stock meets his interest in the bigger picture in terms of both the macro and technical set-up.
He noted, "In an effort to hold equity in companies with stories that should withstand weakness in the major averages, I have been following HIMX closely of late, which is a high-tech name that manufactures integrated circuits for all of the gizmos like flat panel TVs, tablets, phones, etc, and supplies the huge and growing Asian market and manufacturers. Any company associated with China, Samsung, and Google in the high-tech gadget space-- and already has its bear phase in the rearview mirror -- should be on the front burner."
From a big-picture technical perspective, Mike noted that HIMX embarked on a powerful bull phase from the from the 0.97 low in Oct 2011 to the 16.15 high in Mar 2014, but then underwent a deep and severe correction to 5.70, which represented a 69.% retracement of the bull move.
"During the past 5 months, however, HIMX has been on the mend, and has carved out a potentially very powerful rounded base pattern that is just now triggering significant upside potential that projects to 12.00-12.80 in the upcoming weeks. The 200-day EMA has turned up, with an already sharply rising 50-day EMA nearing moving average bullish crossover territory."
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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More Top Calls From Mike
On Thursday of this past week, Mike Paulenoff alerted MPTrader members of a long set-up in CRM (salesforce.com), writing:
"After making yet another new multi-month corrective low at 212.98 last Friday, CRM has turned up and has climbed above initial resistance at 219.50-220.00, which triggered an initial 'long alert' in my work."
Mike added: "My work argues that CRM has turned up, and has triggered a preliminary buy signal.
Last Wednesday afternoon (Jan 13), with the IWM at 210.76, Mike Paulenoff told MPTrader members:
"The Russell 2000 Small Cap ETF is just about 0.5% off of its all time high. As long as any weakness is contained above 204.30, my near-term pattern set up from the 1/04 pullback low at 190.94 is poised for still higher ATHs above 211.73."
The IWM reached a high of 215 the very next day.
Back on Dec 2, after salesforce.com (CRM) reported strong earnings but price languished, Mike Paulenoff told MPTrader members:
"Weakness in reaction to the news has violated the prior significant near term pivot low at 228.66 (10/30), triggering the Bearish Scenario (Red line) that calls for a deeper correction that projects into the 220 area next, and if violated, to the 205 - 200 target zone.
On the evening of November 30, after Zoom Video Communications (ZM) reported earnings, Mike Paulenoff cautioned MPTrader members about the stock;
"My pattern work argues that ZM started a major correction off of its 10/20 all-time high of 588.54 into the 11/10 low at 366.28. The rally from the 11/10 low at 366.28 to today's high at 487.79 (+33%) to my mind represents an intervening recovery bounce prior to a second bout of weakness that completes the larger corrective process.
During late November into early December, Mike Paulenoff became increasingly concerned about the price behavior of Facebook (FB).
The stock not only was grossly underperforming the NDX but also was in the news constantly in an unflattering light regarding its leader, Mark Zuckerberg, and censorship accusations. Since early November, the NDX is up about 10%, while FB is unchanged.
