Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) was still able to continue strengthening on Monday’s trading, even though it had entered the red zone. JCI has now posted a 5-day gain in a row after rising 0.38% to 6,658,768.
The stock of the pride of the country is getting closer to breaking its all-time high of 6,693,466. The breaking of the record can happen today, Tuesday (19/10), although it will not be easy. Because, the recent sharp rise can certainly trigger profit-taking (profit taking).
Meanwhile, good news comes from within the country, cases of disease caused by the corona virus (Covid-19) are getting under control.
The Covid-19 Handling Task Force reported yesterday that 626 new cases of Covid-19 had been added. That number is much lower than yesterday’s 747. Thus, it’s been 3 days in a row that the addition of cases was below 1,000 people.
In addition, the Government has also extended the PPKM (Enforcement of Restrictions on Community Activities) in Java-Bali. Even though it was extended for the next 2 weeks, there were rules that were relaxed.
There are several adjustments to activities in the PPKM period ahead.
“Children’s playgrounds and malls may be opened at level 2,” said Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan at his press conference yesterday.
“Playgrounds will have to record parents’ phones and when children play for tracing needs. And then the cinema capacity can also be increased to 70%. And children are allowed to enter (to the cinema) for levels 1 & 2,” said Luhut.
From abroad, the stock market of the United States (US) yesterday was varied, but the Asian stock market, which opened this morning, was green. Japan’s Nikkei and South Korea’s Kospi each rose by almost 0.7%, which of course could be a positive sentiment for the JCI.
Technically, JCI is still unstoppable after breaking through 6,500 which previously became a thick wall.
So far this year, the JCI has tested this level 3 times, but has always failed to end trading above it. It was only on Wednesday (13/10) that the JCI managed to end trading above it, which made it continue to climb.
In last Friday’s trading, the JCI recorded a slight gain, so there has been no change in levels to watch out for.
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Graph: Daily JCI Foto: Refinitiv – – |
Stochastic indicators on the daily and 1 hour charts are currently in saturated territory (overbought) which risks triggering a correction. On the daily chart even already overbought in a long time. It means very very overbought.
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: JCI 1 HourFoto: Refinitiv- – |
Meanwhile, if you look at the 1-hour chart, the JCI is still in the pattern bullish Channel, meaning that it is still in an uptrend. But the appearance of the Dragonfly Doji pattern increases the risk of a correction.
JCI successfully passed the resistance of 6,630 to 6,640. If it returns below it, the JCI is at risk of a correction to 6,600. The next support is at 6,540.
Meanwhile, as long as it stays above 6,640, the JCI has the opportunity to rise again, approaching its all-time high of 6,693,466, even if it is broken.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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