The ancient art of chart reading known as “Japanese Candlestick Reversal Patterns” will assist traders to detect the change in the psychology of investors and they are highly useful in identifying turning points in the stock market. By timing the change of market sentiment from bearish to bullish, traders will enable to pick the potential bottom of a stock before it stages a rally.

As seen from the chart of SGRO, a bullish Japanese candlestick reversal pattern called “Bullish Counterattack” was spotted on 29th November 2010. Thereafter, SGRO had a rally of 9% within one week to hit a high of Rp3200 on 6th December 2010. On the upside, a break above the immediate resistance zone of Rp3250-Rp3300 may see a further rally to test the next resistance at Rp3875. However a violation below the immediate support at Rp2850 may damage the current uptrend to trigger a sell-off towards the next support at Rp2650.