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 Tuesday, September 26, two days prior to NKE (Nike) earnings, Mike Paulenoff posted one of his pre-earnings "Heads Up" to our members, writing:"Certainly, NKE is oversold enough within a relentless downtrend pattern off of its Feb. 2023 recovery high at 131.31, that a positive reaction to quarterly results reflecting anything other than a disaster coupled with dismal guidance, is likely to trigger an initial positive reaction into the 95 to 100 recovery resistance zone.
On Wednesday, September 7, during one of Mike Paulenoff's frequent intraday updates of the E-Mini SP 500 futures contract (symbol ES) to keep MPTrader members informed about dominant near and intermediate-term trend direction in the index and the SPY ETF, Mike posted an important warning:"ES from a BIG Picture perspective shows the weakness off of last Friday's (9/01) rally high at 4547.75 into this AM's low at 4434.75 (-2.5% of the 4.
Back on June 26th, when nearby WTI Oil futures were circling $67/bbl, Mike Paulenoff issued a heads-up to MPTrader members about a potentially opportunistic technical setup developing in OXY (Occidental Petroleum), writing:"OXY pressed to a low at 55.58 this AM, which marginally violated the 5/11 low at 56.16, BUT held above the more technically significant March 2023 low at 55.51 prior to pivoting to the upside into positive territory, now trading at 57.47.
On Monday August 28, we posted a heads-up about FCX (Freeport-McMoRan) to our MPTrader members, writing: FCX (Copper, Gold, Oil) producer has the right technical look (and a positive momentum divergence at Friday's low) of a completed pullback (44.70 to 37.74) within its larger bullish multi-month Coil formation. Last Friday's (8/25/23) low at 37.74 represented a very healthy 15.6% correction off of the 7/31/23 rally peak at 44.70 and also amounted to an exact Fibonacci 62% retracement of the 5/24/23 to 7/31/23 advance from 33.06 to 44.70.
Top Call: NVDADuring the afternoon trading session of August 23, 2023, prior to the release of NVDA's (Nvidia Corp.) highly anticipated quarterly earnings report, we alerted our MPTrader members to our near-term forecast for NVDA, derived from my technical setup work heading into earnings.
