Nihao Mineral Resources International (NI): Time To Shine Once Again?

Nihao Mineral Resources International (NI) is one of the most loved and hated stocks last year. After hitting more than P8 late in 2009, NI has gone downhill leaving many traders trapped and forced many others to cut their losses.

However, NI is showing some signs of life and opportunities to win some love back. The chart below is NI's 6-year uptrend support wherein it suggests that its price is currently hovering above such support. There is also a potential inverted head and shoulder formation coming and should such pattern come into a reality, NI is bound for some significant rebound. A target price of P4 is ideal for the inverted head and shoulder.

This second chart shows NI's price action for the past 3 months. NI has found a resistance at P2.50 and is out to challenge it once again.

This last chart shows that NI has been gaining momentum as it has risen for the past 3 days and its RSI (encircled in green) is showing that there is some buying pressure on NI.

NI's momentum is not yet significant but is worth looking at. Personally, I think that it is a good buying opportunity for NI.

Personal Disclosure: Bought some NI @ P2.27

PX Poised To Give Its High Another Run

The Manny Pangilinan led Philex Mining (PX) may hit another high soon. The charts below suggest that PX is setting itself up for another bullish run and possibly break its previous high set at the 27 levels.

The first chart below suggests that PX is just a few notches below its 10-month resistance to date.

The second chart however suggests that it is once again going to challenge such resistance. It has just bounced from its June-July support and may have got some new life.

PX finished strong today closing at 25.65 from 25.50 and hovering around the 25.30-25.40 mark for the most part of the day before going up. Ideally, if the support and resistance levels will hold true, PX will rise from 25.65 to a little less than 28 or probably even breach that mark. Setting a target price at 28 (maybe just a conservative amount), PX could rise by 10%-11% in just a matter of days or maybe weeks, not really quite bad.

Aside from the support and resistance levels, PX's RSI suggests that it is far from overbought thus many buyers will flock this stock in the next few days prompting this one to get so bullish. On the second chart, it's MACD (encircled in green) is starting to reverse which signifies that it will once again head back up. With both RSI and MACD considered, there is a good chance that PX will break such resistance (27.80 to 28 levels). If such resistance is broken, PX is going to uncharted waters where history suggests is a territory where stocks phenomenally go high. Setting a target price of around P35 or a gain of more than 20% is still realistic.

PX is fundamentally rich as well. Philex's subsidiary Silangan Mindanao Mining Co. just bagged tax breaks in its P49B project in Surigao del Norte. The said project can generate 2,592 jobs upon its operation by 2017 that covers 2,880 hectares of land and estimated to contain 393 million metric tons of ore which will have an estimated mine life of 36 years.

Manila Mining (MA): Breakout Bound?

The long wait for Manila Mining's (MA) run could finally be over. MA went up by 0.0050 points or 9.62% to close at P0.057 and reach a new high. MA has already broken out from its triangle formed in the past two months and has breached its uptrend resistance as shown in the chart below.

Now that MA is already in an uncharted territory, anything is possible. LC and PWR were phenomenal after making new highs with LC roughly doubled in just two months while PWR nearing 600% gain in just a week! With no resistances to stop MA, it could follow LC and PWR's footsteps and could be the next wonder worker in the days or weeks to come.

Fundamentally, gold continues to do very well internationally which puts the ball back into the mining sector. Gold went up by 2.90 points in the global market despite of the heavy selling that sent the stocks down to a new low for July. Dow Jones Index (DJI), S&P 500, and Nasdaq all went down while gold and oil remained positive.

The positive sentiment towards the oil and mining sector could push MA (and other stocks in the sector) up. A little caution must be exercised though as MA's RSI is indicating that it is already a little overbought and correction or selling might just be around the corner.