This time let’s take a look on BBCA (Bank Central Asia) which give a strong buy signal. Last time, CPIN’s Stocks Analysis, only give a bullish harami signal which means that candlestick tell us to get ready and wait for confirmation. Now, BBCA has the strong buy signal with confirmation from three indicators: Candlestick, Volume, and Stochastic. Let’s take a look on the chart below for more understanding of the BBCA strong buy signal:
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From above chart, we can see that there are three indicators that tell us to buy BBCA which are:
Stocks Analysis Indicators
- Candlestick: The resistance has been broke/passed up
- Volume: Increasing
- Stochastic: The blue line cross the red line
It means that there are three indicators with mutually confirmation that tell to buy BBCA. Of course, before buy it, we should prepare for the target price and cut over price. Let’s first look on the support and resistance:
BBCA’s Stocks Analysis: Support and Resistance
- Support 1: 7050
- Support 2: 7150
- Resistance 1: 7300
- Resistance 2: 7600
With support and Resistance data above, we can set cut loss and target price as below:
BBCA’s Stocks Analysis: Cut Loss and Target Price:
- Cut Loss Price: 7000
- Target Price: 7550
- Be careful Price: 7300 —> if cannot be passed up, get ready to sell
- Potential Target Price: 7600+550=8150 —> form a bowl pattern if pass up the 7600 price
Conclusion
From the entire data (that dug from chart with three indicators), we can decide to buy BBCA. There is a big potential profit in here because it may form the bowl pattern. If bowl pattern is happened, the target price is 8150. It means the benefit is 900 (12 %) if we buy it in current price (7250). That’s an optimistic potential benefit. For the normal benefit (if the bowl format is not happened), we use the 7550 target price which means the benefit is 300 (4%). It is good enough, isn’t it? The possible loss is 250 (3%) which is lower from normal benefit. So can be concluded that it is worthy to buy BBCA with its current price.