The Philodrill Corporation or OV in the Philippine stock market, a company, engaged in oil exploration and production in the Galoc oil field in Palawan had its net income soar by 159% to PHP 957 million in the first 9 months of 2011 compared to the previous year. Its share price, as a result, also jumped to as high as PHP 0.023 after trading flat below PHP 0.015 during the first half of the year.
Now given its movement during the second half of 2011, it appears that OV could still go much higher. As you can see from its weekly chart above, OV has consolidated within an ascending triangle formation. During this time, its trading volume has noticeably declined. This divergence between consolidating prices and declining volume, I must say, is a characteristic of a potential upside breakout in the horizon for this chart pattern. Should OV breaks the heavy resistance at PHP 0.023, it could jet all the way up and revisit its all-time high at PHP 0.031. But before jumping in and going long, it is best to wait for a significant move above PHP 0.023 which is accompanied by a spike in volume. A stop loss trigger then could be placed around PHP 0.020 in case my technical analysis does not go our way.