HIMX breaks below Thursday's low
Himax Technologies Inc. (HIMX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, HIMX finished the week -1.29% lower at 3.05 after losing $0.07 (-2.24%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 3.09, the stock confirmed its breakout through the previous session low after trading up to $0.07 below it intraday.
Daily Candlestick Chart (HIMX as at May 22, 2020):
Friday's trading range has been $0.12 (3.85%), that's below the last trading month's daily average range of $0.25. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HIMX.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
After trading as low as 3.02 during the day, the market found support at the 50-day moving average at 3.02. The last time this happened on July 11, 2019, HIMX actually lost -6.87% on the following trading day. Prices are trading close to the key technical resistance level at 3.17 (R1).
While Himax Technologies is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 2.90 where further sell stops could get triggered. As prices are trading close to May's low at 2.81, downside momentum might accelerate should the share mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Himax Technologies. Out of 94 times, HIMX closed higher 54.26% 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 53.19% with an average market move of 2.93%.