A Rally Seen In Philex Mining
News that Philex Mining (PX) may resume the operations of its Padcal mine mid this year renewed some interest on its stock. After seeing its share freefall from a high of Php26.00 to a low of around Php12.50 last year, technical signals now point to a possible rally in the near term. As you can see, PX has recently broken out and even gapping higher from a small inverted head and shoulders pattern. In the process of doing so, it also moved above its present downtrend line. Based on the height of the formation, PX may move up to around Php18.50 if it is able to keep its head above the neckline. However, it may encounter some heavy resistance there since that level was a previous support. Note also that the same mark coincides with the 38.2% Fibonacci retracement level of the recent down wave. Caveat.
