Short-term Trading Success, Bigger-Picture Prospects for HIMX
by Mike Paulenoff
October 3, 2014 • 2:43 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
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
This past Monday, with Nike (NKE) poised to report earnings later in the week, Mike Paulenoff told MPTrader members that "NKE is vulnerable to a press into the 140-143 target zone either ahead of, or in reaction to, the earnings news."
NKE was trading at 161.75 at the time, and by the week's end the stock was 149.59, having hit a low of 148.
Back on August 18th, nearly two weeks ahead of ZM's (Zoom Video Communications) earnings report, Mike Paulenoff cautioned MPTrader members about the stock.
Mike wrote: "The price structure, which has pressed relentlessly lower (15%) since its 8/05 rally high at 404.35, is probing -- and trading below -- its 100 DMA, now at 345.67, and is considerably beneath its 200 DMA, now down-sloping at 367.20.
In our Top Call article a month ago, we told you about how Mike Paulenoff called AAPL's upside continuation, with the expectation that the stock could extend a little higher before upside exhaustion.
AAPL, indeed, went on to stair-step higher to reach a high of 157.26 high last week, overshooting the upper boundary of Mike's 153-156 projected high-zone by just 0.8%. It then proceeded to initiate the expected bout of weakness that accelerated to the downside this past Friday.
On August 11, Mike Paulenoff alerted MPTrader members to a significant upside reversal signal in AMZN.
Mike wrote that "the 500 point decline is nearing downside exhaustion," noting a preferred downside target zone of 3180-3200.
Fast-forward to August 20, when AMZN pressed to a new multi-month corrective low at 3175.76.
On August 3, Mike Paulenoff alerted MPTrader members to the developing setup in AAPL that also would eventually impact the broader market:
Mike wrote: "AAPL continues to levitate within a high level digestion period and pattern off of its ATH at 150 hit on 7/15. All of the action since mid-July certainly resembles a Triangle pattern atop the May-July upleg from 121.68 to 150.
