Philex Mining Corporation (PX) has been having some rough days for the past couple of weeks as it saw its stock dip from a high of Php 28.95 to a recent low of Php 24.00. The question now is, will PX be able to regain its luster?
From technical point of view, I’d say that the odds of it moving back to the bullish track is pretty good. Just when it found some support at Php 24.00, PX closed that trading day on a bullish hammer pattern. Moreover, the selling that it was seeing for the last two weeks or so has eventually made its conditions ripe for the picking again. Having an oversold condition suggests that buyers could do some bargain hunting which could later push its price higher. Additionally, a presence of a ‘hidden bullish divergence,’ where the price makes higher highs and the RSI marks lower lows, also indicates a likely turnaround in its prices. Hence, with these bullish signals popping at the same time, the possibility that it would indeed rally back is good. PX could then rise before it sees some temporary resistance at around Php 26.00. A move past that level could propel it back towards Php 28.00. On the flip side, a fall below Php 24.00 could send it down to at least Php 22.00.