Looking at the PX price chart, price action for Philex Mining appears to be forming a flag formation, and at the moment, looks set to finally break this consolidation period, and resume its bullish push starting from latter part of August 2010.
After twice bouncing from the 12.90 support level, PX has managed to retest the flag formation resistance level, and if it succeed in breaching this level, the upward price momentum for this move could take PX to as as high as the 19.25 area. Looking back since late September, volume for PX has been consistently been decreasing in value, which could signal a significant price move may be imminent.
Breakout from 14.25 should be the trigger price, and any move below the 12.90 level should also be the signal to cut any losses from this stock. Again, never preempt any breakout in price, and only buy if the breakout is supported with convincing volume.
However, PX also appears to be forming a descending triangle, which incidentally, a break below the 12.90 level will also signal the breakdown from the bearish descending triangle formation. In closing, don't touch PX, unless a convincing breakout has occurred.
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