Jakarta, CNBC Indonesia – After strengthening for 6 consecutive days, the Composite Stock Price Index (JCI) closed the first trading session with a deep correction.
JCI plunged 0.81% to a level of 6,608,996 until the first session break at 11.30 WIB. The index moved in the range of 6,608.92 to 6,671.31 during the first session.
A total of 167 stocks rose, 343 weakened and 153 were stagnant. The transaction value reached Rp 6.12 trillion and foreign net sells in the regular market amounted to almost Rp 250 billion.
The index, which has consistently strengthened over the past week, has opened up opportunities for profit-taking, thus triggering a correction.
Moreover, global sentiment is also not supporting. Regarding the new development of the Omicron Covid-19 variant, the UK has reported that 1 person has been infected with this new variant. This was confirmed by the British Prime Minister, Boris Johnson.
“Unfortunately yes, Omicron caused hospitalization and unfortunately again one patient has been confirmed to have died from infection with Omicron,” Johnson told reporters during a visit to a vaccination clinic near Paddington, London, according to reports. Sky News.
In addition to that from China, the local government reported the first case of the Omicron variant of Covid-19 in its country on Monday, as reported by Reuters and local media.
The first Omicron infection in Panda Country was indicated by: imported case namely from foreign tourists who arrived in Tianjin city from abroad on December 9. Currently, the patient is being treated and isolated at a local hospital.
Meanwhile, Asian stock markets tend to follow the movement of US stock markets, Wall Street which closed reversed towards the red zone on Monday’s trading.
The Dow Jones Industrial Average (DJIA) closed down 0.89% to 35,650.949, the S&P 500 shed 0.91% to 4,669.14, and the Nasdaq Composite fell 1.39% to 15,413.28.
On the other hand, investors are also still digesting the headline inflation data which is heating up again. Uncle Sam’s country’s inflation from the consumer sector (Consumer Price Index/CPI) in the November 2021 period released last Friday (10/12/2021) jumped to 6.8% on an annual basis (year-on-year/yoy).
The soaring US CPI last month was the biggest jump since 1982. The figure was also slightly higher than economists in a Dow Jones poll forecast for a 6.7% increase.
Investors tend to hold back their risk appetite today, ahead of the US Federal Reserve (The Fed) Federal Open Market Committee (FOMC) meeting which will be held for two days, from Tuesday (14/12/2021) today through Wednesday (12/15/2021) US time.
At this time’s FOMC meeting, policymakers are expected to discuss accelerating the program to reduce bond purchases or… tapering.
After sinking 0.81% in session I, what is the direction of movement of the JCI in session II? Here is the technical review.
Technical Analysis
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Photo: Son Technical- – |
JCI movement using the hourly period of the Boillinger Band (BB) indicator through the method of the upper limit area (resistance) and the lower limit (support).
If you look at the JCI closing position, the index must pass the nearest resistance level at 6636 and then at 6.688 to form a bullish trend.
Meanwhile, the index must pass the nearest support level at the psychological level of 6.585 to experience a bearish trend.
The Relative Strength Index (RSI) indicator as a momentum indicator that compares the amount of the latest price increase and decrease in a period of time and serves to detect overbought conditions above the 70-80 level and oversold below the 30-80 level. 20.
Currently the RSI is in the 43.95 area which indicates moving in the neutral zone but tends to decline. In general, the opportunity for the index to continue correction is still wide open.
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
(trp/trp)
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