Despite the 0.56% and 1.14% drop of the PSEi today and the Dow Jones Industrial Average (DJI) yesterday respectively, gold mining companies listed in the Philippine Stock Exchange like Philex Mining Corporation, Manila Mining Corporation and Lepanto Consolidated Mining Company still made it to the top gainers list today. In which case, I chose the stock chart of Philex Mining Corporation or PX in the Philippine Stock Exchange to be the highlight in this post.
On the canvass is the 2-year chart of Philex Mining. By the way, this was one of our stock pick from the Absolute Traders event “BULL pa ba or BEAR na ba??? which I presented last March 25 (kindly check here). Anyway, PX broke out from the 7-month symmetrical triangle chart pattern yesterday and based on the triangle’s size, the target price could be PHP19.00. In the bigger picture, the symmetrical triangle also serves as the handle of the possible 15-month cup and handle formation with the neckline at PHP17.00 and today’s 3.57% gain closed the stocks at PHP17.06. Thus, we could consider PX to have broken out from the cup and handle formation backed up with heavy volume, the MACD heading further north and the 50, 100 and 200-day moving averages being left behind. On the other hand, the cup and handle breakout doesn’t look very convincing so we’ll need tomorrow’s trading session to confirm a complete break above the PHP17.00 marker. Otherwise, it could retrace back down to its immediate support at PHP16.30 before it clears out the PHP17.00 hurdle. In case PHP16.30 won’t hold, the next support could be the 7-month uptrend. On the bright side, gauging the cup’s height and added it to the breakout point, my target price is set to PHP23.00. However, before it reaches that level, the PHP20.00 all-time high will most likely be retested first.