During the trading day on Friday, May 6, trader @wallstjesus reported some bullish “at market” weekly call activity in $HIMX – you can find the report here. Intraday on Friday $HIMX broke established support at $9.95 only to rally into the close with a huge 889,000 share volume spike that regained that critical support level. These events on Friday, combined with recent consolidation in share price caused me to flag $HIMX on the Facebook page before the open today as a stock that was showing some signs of a breakout trade.
The trade triggered today and was confirmed by a 61.5% increase in volume – 4,429,319 shares of $HIMX exchanged hands today vs. 2,741,460 on an average trading day. The stock gained as much as 6.42% on the day before ending the session up 2.72%. It should be noted that $HIMX reports earnings before the open on Thursday, May 12.
The below chart shows the Friday spike in volume into the close and the stock regaining support (the white line is support).
This next chart shows the price action today and the significant increase in volume.
Note the rising 20 day moving average has crossed the rising 50 day moving average. This is a bullish signal known as the golden cross. It is important to note that this signal only appears on the shorter time frame chart; on longer time frames, the chart is more bearish. In the event that the these short-term bullish signals are wrong, I have set my stop at $9.85 as defined in my risk management plan.
Disclosure: The author is long $HIMX