Is Himax Technologies Setting Up for a Big Move?
June 21, 2021 3 min read  This story originally appeared on StockNews    Himax Technologies Inc (HIMX) has been moving in a sideways range since hitting its peak in February. In this range, the stock has formed a resistance line and a level of support. If the stock breaks through either level, a big move is expected. Read more to learn how to take advantage of this trading opportunity. Himax Technologies Inc (HIMX) is a semiconductor solution provider dedicated to display imaging processing technologies. It offers display driver ICs and timing controllers used in TVs, laptops, monitors, mobile phones, tablets, digital cameras, virtual reality (VR) devices, and many other consumer electronics devices. The company is benefiting from long-term demand for displays in smartphones, smartwatches, and other devices. HIMX is a major supplier of the chips needed for screens and touch displays. This demand has led to year over year rises in both earnings and sales in the most recent quarter. HIMX has a current ratio of 2.1, which indicates the company has more than enough liquidity to handle short-term obligations. Management is also efficient with a return on equity of 20.2%. Analysts forecast 81.4% year over year revenue growth and 4,500% year over year earnings growth in the current quarter. Even with all that growth, the stock is still highly undervalued with a forward P/E of 7.48. The stock has certainly shown bullish momentum over the past year with a 310.6% return, though performance has been mixed since March as seen in the chart below. Click Here to Read the Greatest Trading Book Ever Written  Take a look at the 1-year chart of HIMX below with added notations:  Chart of HIMX provided by TradingView  After hitting a peak back in February, HIMX moved into a sideways trading range. While in the range, the stock has formed a resistance level at $16 (red), and a level of support at $10 (green). HIMX is currently pulling back from $16, but at some point the stock will either break the resistance or the support. The possible long position is on a breakout above $16. The ideal short opportunity would be on a break below $10. I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them dont work at all. That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matterthe ones that lead to the most timely and profitable stock trades. Click below to get your copy now! 5 WINNING Stock Chart Patterns  Have a good trading day! Good luck! Christian Tharp, CMT  @cmtstockcoach  HIMX shares were trading at $13.72 per share on Monday morning, down $0.28 (-2.00%). Year-to-date, HIMX has gained 85.66%, versus a 11.71% rise in the benchmark S&P 500 index during the same period. About the Author: Christian Tharp  I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More... The postappeared first on