Stock in Focus: LC

Despite PSE diving 127 points, Lepanto Consolidated Mining A (LC) rose 48.35%. LC opened at the low of  0.191 and closed at a high of 0.27 with 237.85 million in volume. This is a 162% increase in volume versus an average of 112 million in volume for the past 10 trading days. The surge of LC could be attributed to the rise of gold prices which has risen by more than 12.5% since the start of the year.

In analyzing LC's chart, we will look at it from a Weekly and Daily perspective.

Weekly Chart:

Likely major resistance will be at the 61.8% fibonnaci retracement levels or 0.33 centavos. Increase in volume indicates that this is a strong upward trend due to the 162% increase versus the average past 10 days. Stochastics and RSI have yet to reach oversold levels.


Daily Chart:

In the daily chart, Stochastics and RSI are already within the oversold levels. Based on your trading strategy, you can opt to view charts at weekly ticks rather than daily ticks.

If you wish to join the trend, allocate a spot buy portion (20% of cash) for a test buy. Set cut loss at 0.17 which is a few ticks below today's long candle.


Caveat Emptor.