On June 25th, I issued a buy recommendation for PX and on the same day, the trade opened at 6.9. After a few days, it steadily climbed, reaching a high of 7.9. At that point, I got into a dilemma of whether to stay on target at 8.4 or just let my profits run. If you’re a frequent visitor of our Forum, you should see how fickle minded I became on my PX trade with the way I post my messages.

I don’t do profit runs as what the people in the forums know me so if I decide to let my profits run, I’ll be violating my trading system. I decided to go with the latter. Let me tell you why.

At the point when PX reached a high of 7.9, I started to look for reasons to hold on to it:

• PX is making new highs – The market in general is not even in a confirmed bull market and yet PX is making new highs. Just imagine what price PX will reach if we’re in a confirmed bull market.
• Volume is wild
• Bullish trend line was confirmed – see chart in fig. 1

fig. 1

There’s only one reason to let go of PX, according to my own article posted on May 27, PX already reached the target of 10 (fig. 2). Adjusted price after the stock split is 8. I know the article was meant to buy PX for the long term but it didn’t go down to the preferred buying price levels hence the long term trade didn’t open. However, PX hasn’t had any major correction yet so I’m not closing the long term trade recommendation yet. A major correction will happen, I just don’t know when and how deep.

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fig. 2

On Aug. 7th, the most awaited breakout happened. PX opened at 8.1, closed at 9 with total volume at 71 Million shares! That’s 21% of the total value turnover of the entire market!

Now where do we go from here? What’s the target price for PX? Is it time to buy? Is it safe to buy? Should I hold?

The best guess for the target price I could give you right now is 15. That’s an extreme target according to my Fibonacci extension. But who knows? It might go higher than that.

Should you buy? Is it safe? I wouldn’t recommend buying PX, even I am not buying any more shares at this point. There is a high chance that PX will go higher though so if I were to buy PX now, my stop would be at 7.4. Go ahead if you could stomach the loss if ever PX goes south.

Should you hold? Definitely! Maximize your profit and hold on tight until the bullish trend line in fig. 1 is broken.