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Technical Analysis: Petron Corp (PCOR)(1-min read)

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Petron Corp (PSE: PCOR) been’s going down for months now (from a high of PHP12) due to fall in global oil prices. Though it’s latest financial report as of this writing showed that it’s actually starting to benefit from low oil prices since their cost of goods sold is much lower now. Plus it’s recently opened refinery. As a company, PCOR is an oil refiner and not an oil producer thus it actually stands to benefit on low oil prices (raw materials) as long as PH consumers are willing to buy their output.
Have we seen PCOR’s bottom or we just got lucky with our entry?
We got lucky that volume further increased after our entry. MACD and RSI also remain healthy. Gain at 25% at 7.11/sh as of 12Feb.
The fundamentalist side of me is actually wondering why it’s increasing, whether the market is anticipating a bottom and eventual rise in oil prices. Have OPEC and other producers agreed to cut production?
While the technical analyst just says the trend is your friend. Juan doesn’t have to explain it, just take advantage of it.
Looking at the 5-year chart though shows that PCOR might be nearing its resistance as it has been moving within its channel (white lines). Sit tight!
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