Mining Stocks Very Bullish, as PX, LC, MA, NIKL Creates New Highs

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.

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Is 20 Pesos Just a Dream for PX? Or a Reality?

Afer successfully clearing the immediate 16.30 resistance to close at an impressive 16.48, PX looks strong to try and retest the next immediate resistance at 17.00, which could possible lead to, the mighty 20 pesos resistance level.

With the needed volume confirmation is present earlier today, and the MACD level is trudging along very well, the prospects for PX reaching 20 at least looks good, especially once price action allows it to break past the immediate 17.00 level.

Those late to the party might want to try and get in as near as possible to the 16.30 level, or wait for the break of the 17.00 level. Inversely, stops could be placed just below 16.00, in order to cur any losses, or lock in any profits already made.

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Breakout Watch – LND @ 0.87, PX @ 15.00

LND

With a strong move by LND to close at 0.87 earlier today, Fil-Estate Land now looks poised to take out the key resistance level at 0.87, which it has failed to breach since the September 16, 2010. Closing at its day high, and finishing the runoff period with heavy volume on the bid side, barring any major geo-political events, this looks certain to gap up on tomorrow's trading.

After breaking out from the symmetrical triangle last December 9, price has since retraced the previous triangle resistance line, before finally making the strong move today. The three-month technical target at 1.10 remains intact.

PX

After breaking out last December 6, 2010 from a flag formation, or descending triangle formation, PX was unable to breach the 15.00 level quite convincingly, and has since just hovered below this level. Earlier today, PX attempted once again in vain, to take the 15.00 level for good. While it did manage to move higher at 15.04, price action was again repulsed at this level, sending PX lower to close at 14.84.

If PX does indeed manage to breach, and hold the 15.00 level, immediate target for PX will be at 16.00, 17.00, and the grand daddy of all resistances for PX, the 20.00 barrier. However, if PX failed to take out 15.00, then PX may have to retest the 13.00 support level.

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PX – Poising For a Flag Formation Breakout?

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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