Analysis of ADRO the latest news....
- ADRO has just won the tender to acquire 25% stake in Maruwai Coal project, which means it will earn much more profit next year in order to capture the larger coal market (domestic & foreign), which has a huge land of 355.000 hectare to be mined.
- Now it is going to replace Bumi Resources of being the best coal miner in Indonesia, which means it will become the greatest coal company with a lot of supports
- The great thing of all is it earned an increment of net income by 392% which is from Rp887.2 billion becoming Rp4.37 trillion
- The great management of the firm by having mentality of working effectively & efficiently becoming the key point of the firm to keep growing which was from a loser become a great gainer
- Confidence from investor increases to the firm as it is increasing its capacity of production with increment of target sales, which results in increment of net profit, whereas they have a great management which can keep them producing as efficient as possible.
- Increment in interest by investors who has moved their 'eyes' from BUMI to ADRO, which was expressed by today's transactions in which the number of queue of orders are a lot (increase of credit toward ADRO)
Technical view:
- We can see a lot of lines there the red BOLD line is uptrend support since the bottom of ADRO at 2008, yet it's still uptrend since that day.
- The gaining days pattern is seems to be similar with the previous one, around 7 days, currently it's 4th days of gaining days, so we still have maybe 3-5 days to gain.
- The EMA Crossover EMA5 & EMA15 has crossed since Mar 29, 2010 the 1st gaining day, as I signaled days before.
- The MA5 has signaled BUY since Mar 24, 2010 so does ADX, RSI, William's%R, ROC & Stochastic (Mar 25) as I signaled at the mid-session break, check: Watchlist after break....
- The ADX is moving upward which means the rend is strengthening, as the DI+ is getting more gaps toward DI-
- Pattern, usually ADRO will shock for quite long & the Stochastic will move long around overbought area for quite a mean time.
Rating: Trading Buy, TP: 2075-2125, SL: 1940-1960
Mid-term TP (2-3 months) : 2400-2500
Happy Investing^^
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