PX has now broken out from what appears to be a pennant formation at 18.00, and now looks on course to retest the 20.00 key resistance level. Also, rumor has it that there will be a special block sale to be transacted at 21.60, so if there is indeed truth to this, they need to push the price of PX to within 5% of 21.60, before the special block sale can be done.
If you don't already have PX, a nice entry point should be any price near 18.00. However, if the train continues to steam ahead, don't try to chase the train. Trading stop for PX should be below 17.30.
LC and MA have both registered new highs, with LC closing at 0.69, and MA at 0.041. Sky seems to be the limit for these two issues, as little resistance are being offered at these new highs. However, the same cannot be said for LCB, which according to the rumor mill, is about to be declassified, and to be merged with LCB, which could explain its 2.6% drop and close at 0.75.
NIKL has alro broken out from a rounding bottom area pattern resistance of 23.00, and also establiehed a new all time high of 23.70, and close at 23.55. When one measures the breadth of the area pattern, price target for NIKL looks to be at 27.00, within a three-month time frame.
This is a steady stock, so don't rush to get in if you were unable to buy on breakout. Wait for a price pull back, and try to get in as near as 23.00, with 22.00 the stop limit for this trade.
However, as can be seen on the weekly chart of the PSE's Mining and Oil index, this sector continues with its meteoric rise since early 2009 as rising commodities prices, particularly gold and oil, makes for a very bullish market for all the miners and oilers out there.
However, this sector is about to reach the resistance line of the bullish trend channel, so some caution should be in one's thought, if ever one's going long in this sector.
No comments:
Post a Comment