Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) rose sharply 2.89% to 5,161,828 in early trading last week. Trade data noted that foreign investors made net sales of Rp 324 billion in the regular market with a transaction value of Rp 9.7 trillion.
DKI Jakarta’s Large-Scale Social Restrictions (PSBB) which started last Monday. Although there is indeed a tightening compared to the transitional PSBB, it is not as strict as the initial PSBB period in April, so market players are welcome.
Additional positive sentiment for today, Tuesday (15/9/2020) came from the stock exchange of the United States (US) or Wall Street, where the 3 main indexes were compact green. The Dow Jones Index advanced 1.18%, the S&P 500 gained 1.27%, and the Nasdaq led 1.87%.
The development of the corona virus vaccine triggered the strengthening of Wall Street. AstraZeneca, which previously stopped clinical trials in the third phase of the corona vaccine, said it would resume clinical trials in the UK. Then Pfizer said that it could present clinical trial data to regulators at the end of October.
Vaccines are a key factor in how life can return to normal, so that positive developments are always welcomed by market players.
Technically, JCI is now back at 5,163. This level is 50% Fibonacci retracement on the daily chart, so it becomes a strong resistance / support. The fiber pulled from a September 2019 high of 6,414 to this year’s weakest level of 3,911 on the daily chart.
This level is the key to strengthening the JCI today.
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Graphic: Daily IHSG Foto: Refinitiv- – |
The stochastic indicator on the daily chart has moved up from the oversold territory (oversold).
Stochastic is leading indicator, or indicators that initiate price movements. When Stochastic reaches the territory overbought (above 80) or oversold (below 20), then the price of an instrument has the opportunity to reverse direction.
 Graph: IHSG 1 HourFoto: Refinitiv- – |
Meanwhile looking at the 1 hour chart, the stochastic indicator has entered the territory overbought however, it could trigger correction, especially if it stuck below 5,163. Correction will bring JCI down to support at 5,120, if it is successfully passed the decline will deepen to 5,070.
Meanwhile, if it consistently breaks above 5,163, JCI has the opportunity to strengthen 5,210. The next target if this level is broken is 5,260.
(pap / pap)
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