Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) in the first trading session, Tuesday (10/11/20) closed in the green zone, up 1.55% at 5,438.79 levels after news of the success of Pfizer’s powerful Covid-19 vaccine, up to 90% without dangerous side effects.
Trade data noted that foreign investors made net buying of Rp. 804 billion on the regular market today with today’s transaction value of Rp. 8.5 trillion. Recorded 257 stocks green, 178 stocks corrected, the rest 157 are stagnant.
This happened after one of the pharmaceutical companies that made the corona vaccine, Pfizer Inc. In collaboration with German pharmaceutical company BioNTech, their large-scale trials of their vaccine have shown that it is 90% effective in preventing the coronavirus (Covid-19).
The latest news says the vaccine is effective at warding off the Covid-19 virus by more than 90% without any dangerous side effects.
The effectiveness of the vaccine up to 90% is certainly good news because some experts estimate the effectiveness of the vaccine is only 75%. Previously, White House health adviser Anthony Fauci revealed a vaccine with an effectiveness of at least 50-60% that is acceptable to humans.
The news of the effectiveness of the corona vaccine adds to positive sentiment in the global amid sentiment regarding Biden-Harris’ victory in the 2020 United States (US) presidential election.
Joe Biden won the US presidential election this time around, especially in the states of Pennsylvania and Nevada, according to NBC Newspada Sunday. These results are expected to minimize the drag on the results of the largest political celebration in the US.
On the other hand, the market is increasingly convinced that the Democrat Party will not wipe out the Senate and DPR, so that plans to raise corporate and individual income taxes will not be easily passed.
Technical Analysis
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Photo: Tri Putra / CNBC Indonesia IHSG Technical- – |
JCI movement using the hourly period (hourly) of the Boillinger Band (BB) indicator through the upper limit (resistance) and lower limit (support) area method. Currently, the JCI is in the lower and upper area with BB widening again, so the JCI movement which has shot high in the last few days has entered an overbought phase, if it breaks the following support levels it has the potential to continue correcting.
To turn the bias to bullish or strengthening, it is necessary to pass the resistance level which is located in the 5.461 area. Meanwhile, to continue the bearish trend or decline, it is necessary to pass the support level in the 5.409 area. If this level is broken, JCI has the opportunity to continue to fall to the level of 5,376.
The Relative Strength Index (RSI) indicator is a momentum indicator that compares the amount of increase and decrease in the current price in a period of time and serves to detect overbought conditions above the 70-80 level and oversold below the 30- level 20.
Currently the RSI is in the 82 area which indicates an overbought indicator so that it usually indicates that the next JCI movement will tend to depreciate.
Overall, through a technical approach with the BB indicator in the upper boundary area, the next movement tends to be bearish or corrected. This is also confirmed by the appearance of the overbought RSI indicator.
The index needs to pass (break) one of the resistance or support levels, to see the direction of the next movement.
CNBC INDONESIA RESEARCH TEAM
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