Last time, We have done some Stocks Analysis at PGAS (Perusahaan Gas Negara) stocks which tell us to sell (and it is proven as the right signal so far). And now, let’s take a look at another stocks market analysis to improve our “sell feeling”. As have mentioned before, knowing how to sell is a must for stocks trader like us to perfect our stocks analyisis. Without know how to sell, it is high possibility that we will lose the current benefit or even fall into a big loss instead. In other words, it is meaningless to know hot to buy if we do not know how to sell.
This time, let’s analyze JSMR (Jasa Marga) stocks by using Technical Analysis (TA). Here the chart:
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OK, now, let’s take a look of the Candlestick pattern. The candlestick forms the Break Down pattern after a uptrend. It means that there is a reversal signal into downtrend. So, stocks analysis tells us to sell our JSMR stocks. However, as always, We need other confirmations to support the candlestick pattern. The first confirmation will be the support breaking. As in chart, we see that the last candlestick has break through the strong support (the blue line) which means that the JSMR stocks is strongly in downtrend this day.
The second confirmation is from stochastic. At the chart, we can see that the blue line (%D(3)) cross down the red line (Smoothed %D(3)). It means that stochastic tell us that the JSMR stocks currently in down-trend. So, we have three stocks analysis indicators (candlestick break down pattern, support breaking, and stochastic) that tell us to sell the JSMR stocks. It is already a strong signal so we can sell the JSMR stocks this day or at least, put some trailing stop to protect our benefit.
One dispute for this stocks analysis is the Volume. As at the chart, the volume is not significant yet so may be the indicators is a “false” indicators indeed. So, if you need more confirmation, you must wait one more days to see what really happened. Indeed, I am here only give some insight based on the technical analysis – the choice is always in your own hand. Be wise, choose your acts based on your trading plan as well as money management.
Benefit Stocks Trading Everyone!