![\"\"](\"http:\/\/www.laidtrades.com\/wp-content\/uploads\/2011\/05\/Century-Peak-Metals-Holdings-Corporation-May-3-2011.jpg\" "\\"Century")
<\/a><\/p>\nThe stocks of Century Peak Metals Holdings Corporation or CPM in the Philippine Stock Exchange was today’s top 10 flyer closing the trading session up by 5.26% to PHP2.40 with 6.3 million volume traded. For those who do not know, this company is engaged in the mining industry as well as investing in real estate development and energy.<\/p>\n
Last December of 2010, CPM tapped an all-time high of PHP7.10 then started to descend from there on. It reached a low of PHP1.82 last March and could fortunately be attempting to bounce back up given its recent price movement. Like last April 7, the stocks broke out from the 1-year downtrend with an 18.8% gain shifting the MACD towards the positive territory. Also, in today’s trading session, the 50, 100 and 200-day moving averages have been completely cleared out. In that case, the bulls could be taking over.<\/p>\n
Even better, if you look at my analysis above, there could be a 6-month inverted head and shoulders forming. As most of us know, this area pattern is often a reversal pattern. This inverted head and shoulders could bring CPM back to the bullish track as it currently moves sideways following the 1-year descent. To confirm the inverted head and shoulders spotted, the stocks need to break above the PHP2.50 neckline. If that hurdle gets cleared out, we could get a minimum target price of PHP3.10 which I got by adding the size of the head to the possible breakout point. However, before it gets to that level, it first needs to clear out the PHP2.84 resistance. In case the inverted head and shoulders fail and the stocks start to drop, the immediate support could be the 1-month uptrend. If that further breaks, PHP2.10 could be the next support.<\/p>\n