German Tech firm Infineon Technologies Ag

I recall in some earlier entries that I will be doing around on my ex-company, I am not sure which one though. As promised, this entry is on my ex-company, a prominent tech firm of German origin, Infineon Technologies Ag.

'Technologies' carries many meanings, the most basic explanation of this term is that it is related to electronic. What exactly does this term mean for Infineon?  

Infineon is a company involves in manufacture of electronic component, specifically active part, commonly known to people as IC or Integrated Circuit. The strength of the company is mainly into power management product and the star is CoolMOS which is superb in its power dissipation. enabling high power application.

As a result, it positions itself in power management, providing solutions to its customers in power management businesses such as power adaptors, power supplies and LED lighting solutions. In addition, it also involves in security such as RFiD and automotive (especially when the headquarter in the same city as BMW).

Unfortunately, the company for years has not any breakthrough since its invention of CoolMOS Moreover, there are internal competition between Munich and Villach for resources, as well as Singapore against Taiwan over territory control, marketing against R & D and system development over the direction of development. 

Worse, termination and retrenchment are not possible unless the person reaches the age of retirement or company in financial trouble. This is mainly due to the German law because of strong labor union. Frankly speaking, I find the company with a lot of redundancy, I found some of the jobs there with little or no purpose.

However, if I am to do a read on this company, I have to put aside my prejudice. I have been in this firm for around 6 years and my experience is not that great. I have to remove my emotion for an objective read.

I have done a read on this counter before, I believe it was about 2018. I was at a meeting with my ex-colleagues, and I mentioned that something was wrong with the firm as it was heading to EUR12. I have ignored the fact that it had not happened, and the price was still at EUR18.

True enough, EUR12 was reached but only by 2020.

Infineon is quite particular about the company's stock reaching this level. They believe that it is the price when it is possible for other companies to acquire, they do not like being bought over, even though they have done so themselves a few times. 

So how is Infineon doing now?

Fig 1. Infineon Technologies Ag weekly Chart

I have prepared this chart last week, but I am more involved in my other blog these 2 weeks as it is Malaysia Election season, and Malaysia is very dear to me.

On first look, an uneven double top is visible, broke through the neckline and has been on descent 
for a while. In fact, it has reached the double top objective of around 26.95.

During its descent, it did a retest on the neckline before continuation. Using projection measurement, the pennant objective is 18.43. 

The good news is that there seems to be more support on its present trend as the descent is relatively gradual as compared to the early part of 2022. I wonder if it is due to the Russia 'special military operation'? 

None-the-less, I suspect it is in process of a B wave since the initial fall with pattern of a 5-wave movement. We should be seeing a 3-wave upward with possibility of double bottom formation if i break 29.57.

At present it has just broken through the 21-week moving average but without much momentum, the possibility might be low and higher chance of a rectangle. The thing is that the higher level moving averages are on descent giving more strength in pressing it downward. 29.9 may be the next level of resistance.