This is a 1 chart update for several different stocks in the semi-conductor industry. Stocks included in this update are Advanced Micro Devices, Himax Technologies, Micron Technologies and nVidia Corporation (AMD, HIMX, MU & NVDA, respectively).

All of the companies in this quick hits update have a previous full-length article that should be referenced. Those full-length articles can be located via the Stock Market Articles Grid in the main menu, the drop-down category box found in the footer of this page or the search box using key words such as the company ticker symbol.

With that said, let’s get updated!

Advanced Micro Devices (AMD)

In AMD’s previous update, I stated

If you are trading your way up to the $15.67 target area, a pullback to the 10 Day moving average could be the first entry and a pullback to the 20 Day moving average would be the 2nd entry. The 10 Day moving average currently resides around the $12 area. The third entry would be a pullback to the 50 Day moving average if it were to happen before reaching the $15.67 target price.

Well, AMD had a pullback to the 10 Day moving average but fell just shy of reaching the 20 Day moving average. This is a 1 year daily candlestick chart for AMD.

Analyzing Moving Averages for AMD to Determine Buy Points for the Current Uptrend

Based on AMD’s previous article, you may be either 1/3 or 2/3 invested into your position now. At this point, the other 1/3 or 2/3 of your purchase should be held onto until a pullback to either the 50 Day moving average or the $12 area takes place.[s2If !current_user_can(access_s2member_level1)]….

If you want to continue reading this article that includes technical analysis on the stock charts for Advanced Micro Devices, Himax Technologies, Micron Technologies and nVidia Corporation (AMD, HIMX, MU & NVDA, respectively), then you must first login.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] My previous article for AMD posted on February 8 discusses upside price targets for its share price. However, if AMD does not break above the $14.27 mark tomorrow, there is a good chance that a correction is already underway and the pullback to the $12 area may come sooner than anticipated.

Himax Technologies (HIMX)

Himax Technologies (HIMX) has skyrocketed in the last week and a half since earnings. This was after its share price was in a downtrend since March 2016. Because of that lengthy downtrend, I was reluctant to recommend Himax before its recent earnings report.

Then a couple days before its report, HIMX appeared to start a new uptrend. It formed a Piercing candlestick pattern on its daily chart on February 10. That uptrend was confirmed with a gap-up the next day. The first gap-up in a new possible uptrend is a bullish indicator, something I mentioned in the Idea Chamber that same day. HIMX had another gap-up earnings day. All of this price action took place on buying volume that is way above normal trading volume, another bullish sign.

While 2 gap-ups are a very bullish sign, there is another test that can be performed – the downtrend channel test. The downtrend channel test works like this: Anchor Point #1 from the trading channel tool gets placed at the top of the downtrend. Anchor Point #2 gets placed at the bottom of the downtrend. And last, Anchor Point #3 gets placed at the widest part of the downtrend. Once the share price breaks through the top of the trading channel, that is further confirmation that the downtrend is over. The breakthrough should occur on buying volume that is greater than normal trading volume. This is a 2 year weekly candlestick chart.

Performing the Downtrend Channel Test for Himax Technologies (HIMX)

The MACD Histogram on the above chart shows buying momentum. On a longer-term basis, the MACD Histogram on HIMX’s monthly chart shows a decrease in selling momentum. Both are positive, bullish signs.

Once the share price breaks through the top of the channel, any pullback back to the top of the trading channel is one purchase area. Another purchase area is waiting for a pullback to the earnings gap-up area.

Micron Technologies (MU)

This is a 2 year weekly candlestick chart for MU. I’ve illustrated a completed Bullish Impulse wave pattern for MU’s share price. After a Bullish Impulse Wave completes, it is time for a correction. Most Bullish Impulse wave patterns have at least 1 extension in them. Sometimes there are 2. Most times, that extended wave is Wave 3. However in this case, MU’s share price developed a wave extension in Wave 5.

What is a wave extension? It looks like a mini Bullish Impulse wave pattern within the current Bullish Impulse wave pattern. I used the blue waves to identify MU’s extended wave. The blue Waves 1-5 form to make up the black Wave 5.

The black Fibonacci Extension Tool is placed on Waves 1 & 2. It is used to calculate the top of the current uptrend. Normally a stock stops at its Golden Ratio, or the 161.8% Target Line. MU has been in a strong uptrend though. It broke through the 161.8% Target Line and made it to the next stopping point, the 261.8% Target Line. An extended Wave 5 helped to accomplish that.

Analyzing Price Action for Micron Technologies (MU) Using Elliott Waves and Fibonacci Extension Tools

So why go through the hassle of breaking down and illustrating the pattern like that? Based on the type of Bullish Impulse wave pattern that develops, the correction area can usually be determined from the wave pattern alone. No Fibonacci Retracement Tool even needed. That is, as long as the wave pattern is correctly labeled. Based on the wave personalities for a Bullish Impulse wave pattern, I am pretty confident in the above labeling.

So where is the pullback area? When you have an extended Wave 5 in a Bullish Impulse wave pattern, the pullback area is around the top of Wave 1 in the extended wave. The top of Wave 1 in the Extended Wave 5 is around the $20 area. Trimming any shares into strength in the next day or two could present a trading opportunity to repurchase those shares around the $20-$21 area. Or, if you were waiting to jump in on MU’s uptrend, place a good to cancel (GTC) order around the $21 area if you don’t watch the market daily. It is a little higher than the $20 pullback area to make sure the purchase is made since you are not monitoring the trade.

However if you do watch the market daily, then wait for signs of a bullish reversal in the $20-$21 area and see if you can purchase the shares slightly lower than the $21 mark.

nVidia Corporation (NVDA)

This is a 2 year weekly chart for nVidia Corporation (NVDA). Just like AMD and MU, NVDA appears that it has started a consolidation. Wave 5 and the end of its probable Bullish Impulse wave pattern was identified with a Shooting Star candlestick pattern. This seems to also be confirmed not only with my Elliott Wave breakdown, but also with a MACD Histogram that is starting to show a little bit of selling momentum, along with selling volume that last 2 weeks that is above average.

Trying to Determine if NVDA’s Share Price Has Started to Consolidate Its Current Uptrend

When there is an extended Wave 3 in a Bullish Impulse wave pattern, the pullback area is Wave 4 within Wave 3. I do not have the extended Wave 3 labeled, but the Wave 4 area in the extended Wave 3 is around the $84 – $93 area. If you look at the extended Wave 3, you can break it down into a mini Bullish Impulse wave pattern.

The pullback to the $84 – $93 area may take a couple more weeks to complete, so place NVDA on your watch list. Consider setting an alert for NVDA so that when its price breaks below the $100 mark, you are sent a notification. Most trading platforms allow you to set notifications for stocks.

Sometimes when you see a stock trending upwards, it is hard to have the patience to wait for the pullback to complete. Trading and investing take discipline though. You can’t rush the charts. It is also hard to imagine how a stock’s share price is going to find those lower targets I identify. But “somehow”, they do…

Summary

3 of the 4 stocks reviewed in this update appear to be in a corrective process. HIMX is another story. But if 3 of the 4 stocks are in the process of correcting, HIMX can’t be far behind. I will try to take a closer look at HIMX’s current wave structure at some point tomorrow. Look to the Idea Chamber for that update.

When I see the same thing on a lot of charts, the analysis gives me more confidence that what I am seeing is probably accurate. That is why it pays to sometimes look at several charts in the same sector rather than just trying to focus on a single chart.

If you have any specific questions on the updates for AMD, HIMX, MU & NVDA, then drop the question below in the comments or ask it in the Idea Chamber. As always, if you are wondering about a particular stock’s price action, just ask! I will be glad to help and try to respond as quick as possible. There are never too many questions or too many requests. I do ask that members only request 2 stocks at a time though.

For those that want to learn a little more about different techniques to help with the identification of Elliott Waves, check out this revised page. The page can also be accessed from the Advanced Elliott Waves members-only page.

Good luck trading!