Manila, Philippines

Technical Analysis: Philex Mining (PX)

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Posting this in hindsight. Long dumped my PSE: PX when they had issues with operations suspensions, dropping gold prices, hence dropping stocks prices (from almost 28/sh 5 years ago to below 4/sh recently). In short I don’t have PX as of the moment but nonetheless I want to learn its dynamics.
That’s also the thing with Technical Analysis (TA). Juan has to have a list of stocks that s/he checks on a regular basis in case of materializing breakout or bullish patterns or signs of reversals. Maybe Juan can start at unusual top gainers or unusual most actives.
The market had renewed interest on PX (and mining stocks in general) as investors flocked to safe havens in gold (that’s fundamental analysis right there) due to concerns on major global economies (US, China, Europe). As to whether PX will indeed benefit to merit a 52% increase in share prices, who can tell?
Right now, traders are taking advantage of the surge in interest and prices, regardless if it’s fundamentally sound or not.
Juan could have made a risky bet at 4/sh as long as s/he has established stop loss prices. If the bet paid off, that would have been a 52% gain. Wow. A few days after though, there was series of short candles, market was sort-of in a wait and see I suppose. If Juan entered before this phase, then stop loss prices should still be observed.
An entry point that would have suited my appetite would have been the Feb 4 entry at 4.25 as there is more volume the previous days. Besides, 44% is still not bad right?
Friday’s close is not too convincing, and I won’t be to eager to buy PX on Monday’s trade. RSI is already at overbought levels, volume starting to decrease while MACD is still bullish (since it is a lagging indicator). Current prices are far from any moving average. Don’t want to be the ones to buy from profit-taking traders.
One year chart below. Did we just miss a PX breakout, supported by high volumes?
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