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Jakarta, CNBC Indonesia – The Jakarta Composite Index (JCI) plunged more than 1.57% last week, halting an 11-week long rally. For 11 consecutive weeks, JCI was up almost 24%.
Foreign investors posted a net sale of Rs 3.64 trillion the whole market.
The negative sentiment comes from the UK’s corona virus mutation, which is rumored to be able to spread 70% faster. This triggers profit taking (take profit) in IHSG.
Meanwhile, by the start of this week, on Monday (12/28/2020), JCI will respond to positive sentiment from the UK. The day before Christmas, Britain and the European Union (EU) finally made history by reaching a post-Brexit trade deal. This is certainly good news not just for the UK and the EU, but for all countries, from an economic perspective.
The UK and the EU announced that they had reached a “zero-zero quota” agreement, which means that there would be no high import duties or restrictions on the quantity of products sold by both parties.
With this deal, there will certainly not be a hard Brexit.
Hard Brexit is something that market players fear, because it can lead the UK economy into a sharp decline, as well as drag the economies of other European countries.
Additionally, market players are also waiting to see whether or not US President Donald Trump will eventually sign the $ 900 billion fiscal stimulus bill.
Technically, JCI was still able to stay above the 6,000 psychological level yesterday. You can still hold on to it, which means JCI still has momentum to strengthen.
The start of the JCI empowerment push began on Thursday (11/5/2020) when White Marubozu appeared on the chart. candle stick daily.
At that time, JCI opened operations at the level of 5,161.39, which was also the lowest daily level, and ended operations at the level of 5,260.326, as well as the daily high.
level open equal to lowand close equal to high that’s what is called White Marubozu.
 Chart “IHSG DailyPhoto: Refinitiv |
White Marubozu is a sign that the value of an asset will strengthen again. Later it was found that JCI continued to grow stronger.
On Monday (11/23/2020) and Thursday (11/26/2020) JCI re-formed a White Marubozu pattern, so the rally continued.
JCI also moved above the 50-day moving average (50-day moving average / MA), the 100-day moving average (100-day MA), and the 200-day moving average (200-day MA), which which contributed to strengthening momentum.
The stochastic indicator on the daily chart is starting to break out of the overbought area. This means that the pressure drops again.
Stochastic is leading indicator, or indicators that initiate price movements. When the stochastic hits the territory overbought (above 80) or oversold (below 20), then the price of an instrument has a chance to change direction.
 Chart: IHSG 1 hourPhoto: Refinitiv |
The hourly stochastic is moving flat and has not yet entered the territory overbought or whatever oversold.
The closest resistance is in the 6,040 range, if JCI breaks down it has a chance to strengthen to 6,070 to 6,100.
While support is in the 6,000 to 5,990 range, if it passes and it stalls below, JCI will take action. take profit it will resurface and risk bringing JCI to 5,960. The next support is in the range of 5,910 to 5,900.
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