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.

The Potential of PX and JGS

Philex Mining (PX) and JG Summit Holdings (JGS) have caught my attention as their graphs looked promising as of the moment. Both PX and JGS are at their current trend supports and with the talks of the market getting bullish yet again this coming February or March, it seems that both will be strengthening their supports and continue the trend.

Here are the graphs of PX and JGS. As of this writing PX is at 15.2 and JGS is at 19 flat.

Philex Mining (PX)

JG Summit Holdings (JGS)

PX has grown from nearly P2 in 2004 to roughly P10 to start 2011, a growth of about 400%. JGS on the other hand rose from barely a peso in 2008 to about P20 to start 2011, a whooping 2000% growth in just roughly 2 years. Should the trend continue, both PX and JGS offers some really good potential.

For long term investors and those who are planning to invest in the stock market, these two are worth some look.

*Please bear with the graphs. I will get better in time. =)