Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) fluctuated on Tuesday, before finally gaining 0.11% to 6,554,309.
The opportunity for the JCI to continue strengthening is quite large on Wednesday (12/22) trading if you look at the pretty good sentiment of market players, as reflected in the strengthening of European and United States (US) stock markets on Tuesday’s trading local time.
Investors around the world, both in the United States (US), Europe, and in Asia Pacific itself yesterday tended to agree that the latest variant of Covid-19, dubbed Omicron, would not slam the world economy.
It is true that some countries have tightened economic activities and social restrictions (lockdown). However, the impact is predicted to be more measurable and short term once Omicron’s more “friendly” characteristics are finally clinically proven.
This means, if later the World Health Organization (WHO) confirms the hypothesis that Omicron does not trigger complications, then within days and even hours the governments of various countries will revoke it. lockdown.
By looking at the current pattern of development of Covid-19 cases, CNBC Indonesia Research Team assessing Omicron is indeed a chance to be the antidote that will end the pandemic, with a similar scenario occurring with the Spanish Flu in 1918.
The pandemic that led to the tragedy, which killed 50 million people-ten times the fatality rate during the Covid-10 pandemic, did not end because of the discovery of a vaccine or drug to fight the H1N1 flu virus.
Instead, what happened was that the virus mutated into a more “friendly” variant, aka less deadly. Two years later, in 1920, people’s lives returned to normal.
Technically, if you look at the daily chart of the JCI is still below the 50 -day moving average (moving average 50/MA 50), in the range of 6,600 to 6,610 which was previously a strong support.
The 50 MA has always held back the JCI’s decline in the last 2 weeks. When the MA 50 was broken and stuck below it, the JCI pressure became quite large.
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Graph: Daily JCI Foto: Refinitiv – – |
JCI has also not been separated from the pressure of the Shooting Star pattern on Monday (13/12), which made the pride of the country’s stock market plummet the day after.
This pattern previously appeared on Thursday (25/11), after which the JCI slumped for several days.
The Shooting Star pattern is a reversal signal or a reversal of the direction of the price of an asset.
The nearest support is now in the range of 6,525. A break below that level will cause the JCI to decline to 6,500.
Meanwhile opportunity rebound JCI can be seen from the hourly chart where the Stochastic indicator is still near the oversold area (oversold).
 Graph: JCI 1 HourFoto: Refinitiv- – |
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.
As long as it stays above 6,525, the JCI has the opportunity to strengthen towards 6,600 to 6,610.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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