Philex Mining Corporation (PX) was one of the main guys in today’s top gainers list with a significant amount of volume traded along with Lepanto Consolidated Mining Corporation (LC) and Manila Mining Corporation (MA). These 3 companies were suspended in the Philippine Stock Exchange yesterday because of the agreement for the exploration and joint development of the “Kalayaan” mining site but resumed trading a while ago. The PX stocks dipped by more than 3% in the first few minutes right after the suspension was lifted when weak hands exited. Fortunately, as the market came to an end, it recovered and even rose by 6.5% to PHP19.72.
Chart-wise, PX had awesome technical setups when it was still around PHP14.00 like the 7-month symmetrical triangle when it was still consolidating (kindly check here). At the same time, this happens to be the “handle” of the 1-year cup and handle pattern. Within a month, it flew. It formed a bullish pennant (kindly check here) then broke out once more all the way to its current price of PHP19.72. Since my PHP19.00 target price for the symmetrical triangle has been achieved earlier, our next target could be PHP23.00 which I got by adding the size of the “cup” to the breakout point. But before it reaches that level, it first needs to clear out the PHP20.00 all-time high where some selling pressure could be experienced. On the downside, the immediate support could be the 1-month uptrend. If that breaks, the next support could be the 7-month uptrend.