PXP: Round 2

PXP is primed for another strong run. It may not be as strong as its run before but it will be still strong enough to make many traders happy.

Below is PXP's chart.

Despite the bearish market, PXP held its own. It has gone up from 24ish to more than 31 in 4 days and as far as its price and indicators are concerned, it's not yet done.

PXP's momentum is pretty good and is consistent. It is being backed up by good volumes and its STS is showing some strength. It's RSI is still far from being overbought and is indicating good strength.

On the fundamental side, PXP CEO Manny V. Pangilinan has announced PXP and China National Offshore Oil Corp.'s (CNOOC) partnership to drill the disputed area. It was being reported weeks ago that Pangilinan headed to Beijing to meet CNOOC's management for a possible partnership. Pangilinan described the meeting as "cordial and productive".

Below is the list of PXP's buyers and sellers during the past 5 trading days (May 14 to May 18).

Traders from reputable brokers Macquarie and Deutsche bought lots of PXP shares and sold none. Both Macquarie and Deutsche are consistent buyers of PXP over the week.

The magic number to look at is 34 as many traders think that PXP's face value is pegged at 34.

Oil is starting to gain momentum once again. Apart from PXP, OV has gained good momentum as well.

Dow Jones is on a strong downtrend and that should rub off to PSEi. Index stocks are something that should be avoided short term but it poses a good entry for long term positions. For short trading, second liner stocks and the oil sector in particular is worth looking.

Wild card stocks for short trading: MARC. It has gone down significantly already and is rebound bound. Other mining stocks ORE and NI are worth looking as well. ORE's 100-day SMA has become its resistance and 10 became NI's resistance.