Is Philex Mining (PX) Bound For Some Correction?
Manny Pangilinan-chaired Philex Mining Corporation (PX) has been having a terrific performance so far this year, booking a YTD return of 51.42%. However, it seems that its winning streak maybe coming into a halt given its present technical set-up.
As you can see from its daily chart, PX has been going up after it jetted away from the PHP 16.00 price marker. Notice, though, that in each of its successive higher peaks that it made, it failed to do the same in its RSI. This is what we call a bearish divergence between the price and the RSI since a registered high should normally be accompanied by an increase in the momentum which is supposedly represented in the relative strength index (RSI). This suggests that PX’s recent run-up maybe coming to a pause. Now, it could just trade sideways above PHP 24.00 or it could even retrace back to around PHP 22.00. But in the event a move past its previous high at PHP 25.30 accompanied by a jump in volume in RSI happen then PX could be heading back up north.