Technical Analysis

The million dollar question: “When can I take profit?”
Commentary. The JCI rallied again yesterday. I know you are thinking about taking profit. Well, let me tell you when is the best time for short-term traders or day traders to lock in their profits. First of all, we are looking for the JCI’s rebound target. We believe the JCI will reach 3,600-3,620 in the next few days, latest by 4-5Oct 11. Thus, shortterm traders could take profit when the JCI is approaching the price area or near the dates, whichever comes first. Suppose the market shows no significant bearish reversal before 4-5 Oct 11. However, the market is always right. When the sharp correction happens before the mentioned dates, activate your trailing stop and get out quickly. Short-term traders could expect 5-8% profits and then lock in profits.

AstronacciTM Market Timing view of JCI
Short-term time analysis. The rebound is likely to continue until 4-5 Oct 11 with target price at Rp3,600-3,620. Whichever comes first is the valid one. If the JCI reverses back to bear trend after reaching one of them (date or price), traders are advised to exit.

Road Map Prediction:
21-27 Sep: Correction phase with mixed price movements
27-29 Sep: Possibility of the next bottom forming
27-5 Oct: Rebound time

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Source: UOBKayHian dated 29 September 2011