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Bullish Pennant Seen On Philex Mining Corporation (PX)

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Local mining stocks like Lepanto Consolidated Mining Company (LC and LCB) and Philex Mining Corporation (NYSE:PX) have made a pretty good run-up during the past week or so. Still, it looks like there’s going to be a follow through at least for Philex in the near term.

Philex Mining Corporation has risen from just below PHP 16.00 to PHP 18.00 in about a week last. Looking at its daily chart, you will see that it has actually formed a bullish pennant pattern. Notice also that the volume for the past week or so has picked up significantly. This suggest that this run-up is well supported by the buyers. Anyway, a breakout from the pattern or a move above PHP 17.7 could send it to a target of PHP 20.00. A breakdown, however, could bring it back to PHP 16.50.

On the fundamental side, Philex Mining recently reported a 152% gain in its net income to PHP 1.31 billion for the first quarter of the year due to higher gold prices. With gold, silver, and copper – all PX’s produce trading at all time highs and even projected to move higher, PX’s net income for the next period could further expand.

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