Long time no post...

After being long time with almost no time, finally I can be back & post some analysis in my blog again...

How's day friends?? Should be good, I think, even some picks weren't working as what we hope, but we still have some picks which are going as what we hope. A lot of people asking me, where is our index heading? Then I simply answer I don't know, because I have almost no time & my laptop was in the hospital last week. But I see a positivity & optimism in our exchange.

We can see that our index was traded at a very positive enthusiasm from the traders & investors after some dips last day, but still I have to warn you friends, for not being too quick to re-enter the market as it hasn't been 100% confirmed to continue the bull rally for the end of the year. For those who've got stocks in hands, just hold & remember to keep you stop loss level. In the other hand, for those who've not have any stocks, better hold, comfort, wait yourselves for this moment.

Here're some analysis for indices for next week. Let's get started!!!

Based on technical analysis, we can see that our index is now at 3725.05, based on my counting, it must break the number of 3722.62-3730 with volume, unless it can again go down to 3577.85-3590 and consolidate for a while before starting the Q4 Rally (Scenario 1). The other scenario is it keeps the bull rally hot and it might go to 3822-3830 (Scenario 2). See the chart below.

Scenario 1  Index having the Correction

Scenario 2  Index continues the Rally

Based on the oscillators, they show that the index has a tendency to move on again, so it is most probable that Scenario 2 will happen. From most views candlestick, oscillators, mostly are expressing a bull is in place.

The other index is Dow Jones Industrial Average (DJIA), which is known to be the most popular one in the world, we can see the tendency of the buying in US is still available, but they have a resistance to be passed at 11231 which hasn't been passed for two days, usually with this kind of pattern, the price will breakout at the third times, we don't know whether it will be on Monday or later. Yet in the last three months it is at a bullish area & still on track, so the target breakout is 11231-11244, once this price has been broken out, then it is highly possible that the index will continue the race. Oscillators are fine & showing a bullish reversal at the last two trading days.

Happy Investing^^

Disclaimer ON!!!

Cup & Handle Pattern

Cup & Handle is one of the most popular chart pattern among technician, it is a bullish reversal pattern. Sometimes people call this pattern as rounding bottom or saucer pattern.

Usually the handle is half of the height of the cup & the formation of handle is seen when it has a breakout from the bottom of the handle with huge volume. This is one of the indicator of the handle breakout before confirming the price breakout, and another confirmation of the handle formation is the most essential in the pattern.

We can find this pattern as both bullish reversal or continuation pattern. In bullish situation, this pattern happen usually in consolidation phase, but in bearish situation, this pattern usually appear at the bottom of the bearish.

Happy Investing^^

Disclaimer ON!!!

Crude Oil

Finally, I got the answer of why this commodity kept increasing. Some causes can be seen from some views, based on technical analysis, crude oil has broken the resistance at 87 and 2 days ago the price bounced at the trend line. Based on the news, OPEC said that they don't want to have their oil valuing less than US$100, as the USD keeps depreciating, yet the oil inventory declined sharply reported yesterday.

Happy investing^^
Disclaimer ON

Best Regards,
Christopher Tahir
Blog: http://ez-stock.blogspot.com
MSN: chris_tahir@hotmail.com
YM: chris_tahir@ymail.com

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Absent

For these few days, I might be absent due to having too much project to be done.

Happy Investing^^
Disclaimer ON!!!

EZ Stock List (Nov 8, 2010)

After looking at JKSE strengh, we can now see some stocks, after doing some exits last time. Some are blue chips & some are second liners.

1. PT Timah (TINS.JK)
Being the largest tins producer in Indonesia & near to its all time high is the plus point of the stock, yet since the beginning of this year, the price has surge up to 50% or more. Yet, inventory of tins all over the world is decreasing, this is the main problem that cause the price to be increasing as people still needs tins, the other industry that will be affected is the electricity industry.

Rating: Buy, Entry: 2975-3025, S/L: 2775-2750, TP: 3725-3900

2. Japfa Comfeed (JPFA.JK)
After consolidated for a moment, this stock is seemed to be in a great momentum of accumulating the power to go to the nearest high & in a very high possibility of achieving 5000 in near time. Yet, it is still accumulated & indicators are showing its good position now.

Rating: Buy on Weakness, Entry: 3550-3600, S/L: 3100-3075

3. Indofood Sukses Makmur (INDF.JK)
Look like accumulation is taking place, yet the risk is low enough. Not affected by the issues in Taiwan, INDF still has other products that can hold and keep it running in profit.

Rating: Buy, Entry: 5300-5350, S/L: 4975-4950, TP: 6000-6150

Happy Investing^^
Disclaimer ON!!!