Of course, because of the Europe and USA financial crisis, it is very dangerous to do the stocks trading recently (despite how good our stocks analysis). The world-wide stocks market is in down trend currently so it is hard to make money from stocks recently. There are so many fears. However, as I mentioned before, if there is a fear, it is a time to collect the stocks since the price is very discounted. But, we need to be very careful since the fear may still strong and the price will go down further. We may catch the “falling knife” which will surely hurt us.
Therefore the best stocks analysis is a must in here. It is surely required a right way to buy the stocks (and then sell it) when the market is in down trend (bearish). Please read the tips how to do stocks trading in down trend (bearish) before continue. OK, now, let’s do some stocks analysis for Bank Rakyat Indonesia (BBRI) stocks. For your information, BBRI is one of the biggest bank (or financial institution) in Indonesia. Firstly, Let’s do the Technical Analysis based on the daily chart below:
Click For The Larger Image
As we can see, the candlestick pattern offers a buy signal with the Bullish Harami candlestick patterns. As you know, Bullish Harami pattern offers a weak buy signal so the technical analysis confirmations is a must. Fortunately, in the next day, there is a confirmation which is formed by the candlestick itself. As we can see in the chart, there is a white candlestick which has the higher closing price than the Bullish Harami’s black candlestick.
So, we have the confirmed Bullish Harami candlestick patterns in here. It is surely a right time to collect the BBRI stocks. However, as note, the Volume is not significantly high so maybe the buyers power is not significant yet. Of course, it is still suggested to buy the stocks but the tight stop-loss must be set. As for stochastic, we can see that the blue line has pulled up from the 20% line. It means the price is in its way to be up trend (bullish).
Also that, the blue line is in point to cross up the red line. If finally happened, it is confirmed (based on stocks analysis point of view) that the BBRI stocks movement is in up trend (bullish). As additional from Moving Average, the BBRI stocks movement is currently restrained by the MA 100 as resistance. So, beside for volume and stochastic, we still need to over look whether the MA 100 resistance can be penetrated. It is surely if we want to wait for more certainty.
However, as I mentioned before, the confirmed Bullish Harami pattern is enough as signal to decide to buy the stocks. As for more certainty, it is okay to wait the confirmation from the volume , Moving Average, and the stochastic before start to buy. The consequence is that we will lose some gain but it is okay. As trader, we should choose the capital safety first. If confirmed, the stocks analysis’ target price will be IDR 6950. But be wise, always put the stop-loss ortrailing stop since the market is still in down trend (bearish).
The Technical based stocks Analysis (TA) has been done. Now, let’s take a look at the simple Fundamental based stocks Analysis (FA). For your information, since the analysis is for trader, not for investor, it is okay to just do a simple Fundamental Analysis (FA). But, if you want to invest instead to trade, the deep Fundamental Analysis is a must. OK, let’s continue. Bank Rakyat Indonesia (BBRI) has a good growth.
The BBRI’s Net Income and Earning Per Share (EPS) grow significantly from year to year during the last five years. So, from Fundamental Analysis (FA) point of view, the BBRI stocks is worthy to buy and from Technical Analysis (TA) point of view, it is the right time to buy the stocks. In short, the stocks analysis result tells us to buy BBRI stocks. However, the decision (as well as the responsibility) is always on your hand so please only buy after everything is match with your requirement and condition.
Have a great stocks trading day everyone!