Himax Technologies Inc. (HIMX) rallied above the 2006 post-IPO high at 9.45 in 2013 and rallied to an all-time high at 16.15 just six months later. The subsequent decline found support near 5.50 in the middle of 2014 and eased into a broad, rounded base that lasted into a March 2016 breakout. Trend momentum failed to develop after the buying spike, yielding six months of testing at new support.
This digestion process may be coming to an end, allowing the price to complete the large-scale breakout that started three years ago. It’s now testing the October 2014 high at 10.45, with a rally above that level opening the door to the 2016 high and .618 Fibonacci selloffretracement level at 12. This is a progressive pattern, with a subsequent breakout above that level needed to bring the March high and .618 retracement level into play. It’s best to manage this trade aggressively with a stop loss below the 50-day EMA, currently near 9.75.
3 Chip Stocks With Strong Buy Patterns (MSCC, HIMX) | Investopedia