HIMX Buy on a U shaped recovery with 2.46 risk/reward ratio

NASDAQ:HIMX   Himax Technologies, Inc.
On the 29th of July, $HIMX gapped down after lowering its guidance and paying a dividend. I entered a long at $7 a share yesterday and am targetting a trade to fill the gap. $HIMX has just broken above its pivot area around 6 - 7, making it a strong level of support, and has shown a flat and wide U-shaped recovery, which is very bullish as it shows strong buying power is coming in, which was confirmed on the 13th of July when large volume caused a 6.4% increase in the stock's price, showing that volume has shifted to being more bull sided.

The nearest pivot point on the upside is around 8.75, giving this trade a high risk/reward ratio of 2.46. I am targetting a profit of 24.5%, with a stop loss at 10%.


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