Indonesia Stocks Market (IDX)/JKSE has created the new highest level record in last week which is 4109.08. Last week was surely a good week for stocks traders/investors since IDX/JKSE has created new highest record from day to day. From Stocks Analysis point of view, our stocks portfolio should currently be in positive area this day because of the last week stocks market condition. However, as result, the stocks market is even more overbought today so we should be very careful in our trading this week.
Since the stocks market is very overbought, as stocks analysis basic knowledge, we may force to buy high and sell higher if still want to make some money from IDX/JKSE in this week. However, in my opinion, even tough “buying high and selling higher” strategy is risky but it is worth to try. We can always lower the risk by putting the cut loss level in our trading. For better understanding about this “buy high and sell higher” strategy, let’s do stocks analysis on SGRO (Sampoerna Agro) stocks/shares as example. Firstly, take a look at the SGRO Charting below:
As we can see, from stocks analysis above, the stochastic tells us that SGRO have been in Overbought area. However as I have ever mentioned, overbought means nothing after there is a bearish reversal signal. In other words, it is still safe to buy the stocks/shares as long as there is a buy signal. And this time, SGRO offers a buy signal by resistance breaking with high volume. For your information, it is considered as continuous uptrend (bullish) if the resistance is broken with high volume.
And as in chart, the IDR 3625 resistance level is broken while the volume is very high. It is obviously that we have the buy signal in here. But, since SGRO has been in overbought area, we need to put the cut loss level and discipline with it. I have also add the support line (IDR 3575) in the stocks chart above and we can put the cut loss level slightly lower than it. As example, we can put cut loss level in IDR 3525. So, in here, stocks analysis has provide us with buy level as well as target profit and cut loss point.