The technical setup in the Manila Mining Corporation stock chart or MA in the Philippine stock exchange suggests a breakout soon from what looks to be a symmetrical triangle or a cup and handle pattern. Regardless of what pattern this consolidation may be, it looks bullish and could continue to go higher given its 5-month uptrend is well intact, the price moves above the 50, 100 and 200-day moving averages and the MACD is off to a bullish crossover. Still, a breach above the 2-month resistance shall confirm the consolidation’s breakout.
Manila Mining’s move today disregarded the US market’s 151-point drop the night before with its 4.3% gain to close at PHP0.048. If this stock successfully breaks out, I’d set a target of PHP0.06 which I got by gauging the height of the consolidation added to the breakout point. However, along the way, it could face some resistances at the PHP0.05 and PHP0.053 levels. On the downside, a strong support would be the 5-month uptrend. If that breaks, the next marker could be the 2-month support.