Get Ready to Ride the Bull..!!

In the last few days, the stocks have been in a pullback situation. Fund managers and major investors are taking some profit in the Indonesian market which has been the best performer this year. For me, as an optimistic and a very bullish trader, I see these days are the best time to enter the market.

I would show you guys some perspectives and ideas to time the market from technical point of view.

BMRI Daily Chart
(Source: Dongsuh Securities, edited)

The chart above is the Bank Mandiri (BMRI) candle stick. The chart shows that BMRI has been pushed down beyond the major moving average line (the red MA line). It could be seen as a sign that BMRI is entering a bearish situation. I tried to figure the fibonacci retracement from BMRI chart to get an ideal price to buy this stock. The March 2009 was the initial long rally, with initial price of 1750. The highest level was 5300. The 23.6% retracement for me is an ideal price to get in. The price of 23.6% retracement is around 4462.


INTP Daily Chart
(Source: Dongsuh Securities, edited)

This is another chart of Indocement (INTP). The rally was started on March 2009 with initial price of 4250. The highest level was around 12300. The 23.6% Fib retracement is 10400, which is an ideal level to buy this stock.

The best price level to buy those stocks are unique for every investor since every investor has his own risk-aversion or risk-taking level. For an aggressive investors, 23.6% might be the best level but for moderate investors 38.2% or 50% might be the ideal level.

Here is the summary of the retracement level for BMRI, INTP and SMGR.

Fibonacci	BMRI	INTP	SMGR
Retracement
23.60%	4462	10400	6174
38.20%	3944	9225	5663
50.00%	3525	8275	5250
61.80%	3106	7325	4837
100.00%	1750	4250	3500