The shares of Philex Mining, which is the largest gold producing company in the Philippines, or PX in the Philippine Stock Exchange have broken out from a either a rare inverted head and shoulders continuation pattern or a descending triangle. Either way, the recent breakout suggests a subsequent upside move for the stock. Looking at its daily chart, you can see that the volume of shares that was traded during the time of breakout has increased. The MACD likewise signal a bullish move with a bullish crossover (histogram just crossed above the zero line). Moreover, its RSI is already above 50 but below 80, suggesting that its upside move is gaining momentum. Yesterday’s (December 7) trading has also pushed it above all the three moving averages. Anyway, if buying continues to pick up, it could head back to its former high at PHP 17.00.
On the fundamental side, it was recently reported that Philex’s production for the month of November has increased by about 35%. With gold, silver, and copper (the company’s main products) all trading at all-time highs for the last couple of months, its revenues for the last quarter of the year would surely beat last year’s figure. Actually, it is just simple math – more production and higher price equals higher revenues. Such would of course reflect positively on the company and the company’s shares.