KiliamL

Do Not Chase Himax Technologies (NASDAQ:HIMX), This Is Why

NASDAQ:HIMX   HIMAX TECHNOLOGIES INC
76 7 2
Yesterday, shares of Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX) had a strong performance in a weak market. This price action is a sign of relative strength for the stock . At this point in time, many amateur traders and investors are chasing Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX), as it has moved from a low of $5.70, to a closing of price on Monday of $9.82. However, the smart investors and traders think different. As the general population often looks to chase a strong move, or gets sucked into the hype which lags the real price action of a stock ; the professionals who do this for a living as we do, take a different approach.

The first thing to do is start looking for levels of resistance to either take profits if already in the trade, or to find resistance points at which to sell short the stock and profit as it pulls back. Let's take a deeper look into the HIMX             chart...

I isolated a few levels on Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX) that can be utilized to take profits, or with the right pattern sell this equity short. As seen on the chart below, please note that Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX) is already nearing the first resistance point at $10.05, the second resistance level will be at $10.91, and finally the third and major resistance level will be at $12.15.

If you're already long Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX) those are levels to watch for signs of weakness and take some money off the table, while trailing your stop. If you're not already holding this stock , and you are looking for a shorting opportunity, the best levels to do so will be the 2nd and 3rd levels mentioned previously, depending on how Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX) gets there. Remember, that for these levels to be strong and give us a high rate of success, there are factors such as; Pattern and Time that must align perfectly with Price. Without considering these factors, the levels may not present as high profit potential as they otherwise would.

I will be monitoring the price action in Himax Technologies             , Inc. ( ADR             ) (NASDAQ:HIMX) and will alert our members of a possible trade if we get the right factors in place. Being patient and only taking the best set ups is what allows us to maximize profit and have big gains in trades, just like this recent 9% gain in Yahoo! Inc. (NASDAQ:YHOO) which was given to members along with precise entry and exit levels live as we were trading it. In the same manner of which we give all of our member trade alerts, we gave everyone time to enter this trade or take profits on this Yahoo! Inc. (NASDAQ:YHOO) as seen here. Be ready for the action join us here at the Elite Round Table and don't miss out on the next big trade.
2use
2 years ago
Good information, but better to have some description both on chart and in text why those levels.
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KiliamL
2 years ago
Will try to give some reasons as to why certain levels are support/resistance in future posts, but must of the technical analysis is proprietary. It would be confusing for those who do not know our methodology.
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2use KiliamL
2 years ago
True, but it is quite beneficial to have as charts serve a convenience, plus those who know it well and see it on himax doubt are here to read the chart ;) It is mostly those who did not check it here. i agree on the levels though. Still, i find today's strong action in breaching 10 and 10.50 interesting
HIMX - Update: Cup-n-Handle, Double Bottom, Fibs and more
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KiliamL 2use
2 years ago
I will add more info on future posts. Thank you for comments and suggestions.
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9pin
2 years ago
just looking back at when you made this chart... nice call!
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KiliamL 9pin
2 years ago
Thank you, never good to chase. 85% of the time these kind of stocks come back and set up with patterns to play them.
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2use KiliamL
2 years ago
Possible side-ways trend between 10 and 7 for now. Volumes confirm.
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