HIMX still stuck within tight trading range
Himax Technologies Inc. (HIMX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HIMX ended the month -6.28% lower at 3.88 after losing $0.08 (-2.02%) today, significantly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HIMX as at Jul 31, 2020):
Friday's trading range has been $0.11 (2.84%), that's far below the last trading month's daily average range of $0.21. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HIMX. Prices continued to consolidate within a tight trading range between 3.72 and 4.02 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Hanging Man which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on Monday, HIMX lost -2.86% on the following trading day.
Prices are trading close to the key technical resistance level at 4.02 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 4.02 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 3.72 where further sell stops could get triggered. As prices are trading close to July's low at 3.58, downside momentum might speed up should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Himax Technologies. Out of 53 times, HIMX closed lower 58.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 58.49% with an average market move of -0.17%.