This is a Himax Technologies (HIMX) quick update. HIMX’s share price had a little earnings sell-off.

The 100% and the 161.8% Target Lines from the green Fibonacci Extension Tool calculate HIMX’s upside potential in the near-term. The red Fibonacci Extension Tool calculates downside risk for HIMX’s share price. Look at the 161.8% and the 261.8% red target lines for downside risk areas.

With decreasing buying momentum and an earnings miss, a short-term pullback to the $7.25 area looks very possible in the next 2-3 weeks. This is a 2 year weekly candlestick chart.

The 100% Target Line is a probable target price for an uptrend. I also see the Golden Ratio or the green 161.8% Target Line as another potential upside target price. The chances of reaching the Golden Ratio during the next uptrend will be increased if HIMX can hold the $7.25 price level during any continued pullback over the next couple of weeks. HIMX should continue to see strong support around the $6 – $6.50 price level in case the $7.25 support fails.

I do see a remote chance for a re-test of the $4.88 previous bottom. That would be according to the 423.6% Target Line from the red Fibonacci Extension Tool. But as I mentioned, that seems “remote” at the current time.

The red 161.8% Target Line appears more as a more likely support area. If HIMX’s share price were to reach the 261.8% Target Line, that area could be used to make another scale-in purchase. As always, make sure a support area holds before just making a blind purchase at a support area.

Due to the earnings miss, there may be a little more accumulation. Use the $7.25 and $6.40 areas to your advantage if HIMX’s share price pulls back into those ranges.

Good luck trading! See you around the Idea Chamber!