Mad Money host Jim Cramer used my Himax (HIMX) chart on a recent show, because he believes the fundamentals around Himax (HIMX) remain solid: their chips are state of the art and should remain in demand.
Of course Cramer realizes that with the market selling off broadly, few stocks are immune to weakness, but probably not a momentum stock like Himax. Based on what he saw in my chart, Himax is a buy – and I agree. Momentum indicators like the relative strength index and Williams %R oscillator are bullish. You can catch the full discussion in the clip below:
Also he says the moving average convergence divergence indicator or MACD is flashing a buy signal. According to Lang, the last time the MACD flashed a similar signal was in late November, right before the stock started running from $10 to $14 in a period of weeks. Looking at the weekly chart, Lang also likes that the stock has been in a consistently strong uptrend for the last fifteen months.
It’s possible that pattern may repeat itself, too. Nonetheless, both the technical and fundamentals suggest even if shares fall near-term, they should advance thereafter. Therefore, Cramer is a strategic buyer. “I think we could be looking at a terrific opportunity to buy a strong stock in a rare moment of weakness.”