Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) – Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) on the daily charts bounced back from the lows that it hit a couple of days showing some signs of bargain buying in the stock. Though the stock hit an intra day low of $8.70, it saw a smart pull back and stock ended at the highs of the day (though lower for the day).
Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) currently trades below its 50 day moving average and the 200 day moving average which are at $13.13 and $10.52 respectively. The support at the 200 day moving average was taken out a couple of days ago and the stock saw a swift sell off. We believe if the stock does try to bounce higher only a close above its 200 day moving average would make us believe that the downturn in the stock is over and we can see some follow through buying on the stock.
The momentum indicators for Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) are showing weakness and as of right now showing no signs of a bullish crossover. The relative strength index on the other hand is in the oversold zone after yesterdays’ smart pull back is showing first signs of trying to bounce out of the oversold zone. But as stated above only a close above 200 day moving average would make us conviction buyers.
On the weekly charts the stock looks weak and has broken below all important support zones and the sell off that the stock has witnessed this past week has made the stock come below its 50 day moving average. If the stock closes below $9.30 on a weekly closing basis we might see a sharp sell off in the coming weeks that can take the stock below $7 levels in the short term.
Latest Buzz:
Topeka Capital has reduced the year end price target for Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) to $12.00 stating bleak growth outlook for the company.
