HIMX closes within prior day's range after lackluster session
Himax Technologies Inc. (HIMX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HIMX ended the week 13.35% higher at 4.84 after losing $0.04 (-0.82%) today, underperforming the S&P 500 (0.18%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HIMX as at Feb 14, 2020):
Friday's trading range has been $0.20 (4.01%), that's below the last trading month's daily average range of $0.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HIMX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Regardless of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 7th, HIMX actually gained 3.28% on the following trading day.
After trading down to 4.80 earlier during the day, the stock bounced off the key technical support level at 4.82 (S1). The failure to close below the support might increase that levels significance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 5.05 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Himax Technologies. Out of 319 times, HIMX closed higher 54.23% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.10% with an average market move of 1.55%.