Today’s Stock Choice

Stocks in Asia markets tumbled again after concerns grew that the deep spending cuts under Europe's bailout plan would slow a global recovery on May 17, 2010. Hang Seng Index dropped 116.83 points. Shanghai Composite Index slided 103.95 points. Indonesia Stock Exchange Index ended down 38.50 points.

The euro dropped to a 19-month low against the dollar and is close to its lowest level in four years as confidence in Europe's ability to contain its fiscal problems wanes. Oil prices on Monday fell to their lowest point so far this year and are now down about 20 percent in just two weeks as investors worry about the ripple effects of a debt crisis in Europe.

There is fear in both equities and commodities market that economic weakness in Europe could spread and hurt the global recovery.

There are many Indonesia stocks that have deep dropped this time. The average decline of them were more than 10 %. Some of them were worth buying. HD Capital research recommended BKSL, ANTM, PGAS, BTEL and BUMI as stocks choice, according to inilah.com.

I want to talk about PGAS this time. On March 25, 2010, PGAS reached its peak price at 4,400. Then the stock moved down until now. On May 17, 2010, PGAS was opened at 3,750, then down to 2,650. It was closed at 2,700. PGAS was down 15,91 % in about 8 weeks. I traded it and got profit although Indonesia market’s dropped deeply.

Why do I want to talk about PGAS ? PGAS has been uptrend for long time. Therefore, it has been proved quiet save for long term investors. Several indicators have shown that PGAS is in very cheap price and it’s been oversold. It’s potentially reverse up anytime when market’s situation support it. It can provide bulk profit for long term investors. PGAS is almost meet a very strong support this time. If market’s situation oppose it, it won’t decrease very much. It means that this stock is good for traders, too. It will give decent short term profit for traders in a good situation. The capital of traders won’t be detain for long time, if it still decline. I choose PGAS because this stock is worth buying.

BUMI Has Met A Very Strong Resistant

What happened with BUMI ?. Since mid January 2010, after it reached 3,000 on January 11, 2010, the price of BUMI fell to 2,150 and it hasn’t returned to 3,000 yet. BUMI has moved sideways in low price for almost 5 months.

BUMI has been going into several problems in recent several months. Tax problem and increase of corporate’s debt are the major bad news for BUMI. There are many rumours about BUMI, too. After the resignation of Indonesia Secretary of the Treasury, some people and analists said that BUMI would get a good wind to increase.

On May 10, 2010, BUMI was opened at 2,325. Then its price was up to 2,500 and it was closed at 2,475. Its volume of transaction was 943,465 lots. It was a significant increase of its volume transaction.

Last Tuesday, May 11, 2010, I was in a chatting room. BUMI was opened at 2,475 and then raised to 2,525 quickly. It seemed that its demand was strong and its buyers were very aggresive. Then a trader in the chatting room wrote that if BUMI broke out 2,550, it would continue uptrend. I didn’t agree with his opinion. I said that 2,550 was a critical point. BUMI would be difficult to reach 2,550. There is only a little chance for it. He continued with his opinion that if BUMI reached 2,575, it would continued to 3,000. His recommendation is “buy”. Then I told him again, that it’s almost impossible for BUMI reaching 2,575 this time. BUMI won’t break out 2,550.

After reaching 2,525, BUMI went down to 2,400 and it was closed at 2,425 last Tuesday. Its volume of transaction was 701,397 lots.

Last Wednesday, there was a comment from an analist in inilah.com that BUMI had a chance to 2,550 as a resistant level and 2,350 as a support level on that day. He recommended trading buy for BUMI and waited Q1 financial report of BUMI 2010 that would be released next week. A review of research from Samuel Sekuritas recommended buy because a subsidiary business of BUMI would make an IPO in Q3 2010, according to inilah.com. BUMI was opened at 2,475, down to 2,425, and it was closed at 2,500 last Wednesday. Its volume of transaction was 277,088 lots.

It’s been 3 trading days after our chats and BUMI still can not touch 2,550. It reached 2,525 and it was closed at 2,500 again last Friday. BUMI was up 8.7 % in a week. Will BUMI break out 2,550 and continue uptrend next Monday ?. No, I don’t think it will be, because BUMI has met a very strong resistant. BUMI will start to downturn next Monday. I predict that its volume of transaction will be about 150,000 to 300,000 lots. Do you see it in BUMI’s chart below, too ?.

Why Did I Choose Indonesia Stock Exchange ?

Dear all,

Thank you for visiting and watching my blog.

I am one of Indonesian Stock Exchange trader and honestly, I can get bulk profit from it. That’s why I want to share my trading experiences with you, so that you can also undergo these favourable experiences.

You may ask me why I choose trade in Indonesia Stock Exchange? There are several reasons why I choose Indonesia Stock Exchange.

First, Indonesia is an emerging market to watch. It is one of the most attractive emerging markets in the world. The others are China, India, and Brazil. However, i want to focus my view and topic in Indonesia Stock Exchange, especially for blue chip and liquid stocks.

Please see below for the performance comparison of several Major Indices in recent 8 months :


Source of data : Yahoo finance

Second, Indonesian goverment has made steady progress in stability and a condusive investment climate.

Third, we have many experiences in Indonesia Stock Exchange and we are very familiar with Indonesian stocks trading. We have through the worst moment when global stock exchange collapsed. But, we can pass it well. It means that we don’t just talk trading theories. What we talk are what we do and our experiences everyday.

So join me and watch my trades. Subscribe to http://profittrading77.blogspot.com/ to see my personal tips on stock trading and stock market chart analysis.