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Jakarta, CNBC Indonesia – The Composite Stock Price Index (IHSG) fell 2.31% to 6,023,289, in the price of last Tuesday (12/22). Concerns about the mutation of the coronavirus in the UK, which is said to be 70% easier to spread, have led to a sell-off on global stock exchanges.
JCI has also been hit by the sap, especially with the recent sharp increase, which has of course led to profit taking (profit taking).
Foreign investor trade data made net sales of Rs 686 billion in the normal market, with a transaction value of Rs 20.8 trillion.
Prior to this week, JCI had competed for 11 consecutive weeks, with a total gain of nearly 24%. During that period, JCI was the best stock index in the world, outperforming the giant Wall Street stock index.
With this strengthening, it is natural for JCI to collapse into action. take profit.
Today Wednesday (12/23/2020) is the last operation of this week, because starting tomorrow is the Christmas holidays. So JCI runs the risk of ending a series of gains in 11 consecutive weeks, because all this week JCI is still at minus 1.33%.
However, he did not rule out that JCI could extend the rally, because there was good feeling about the reorganization that President Joko Widodo (Jokowi) did yesterday. Jokowi replaced 6 of his ministers and it is expected that they can improve their performance to face the corona virus and its effects, as well as reactivate the economy.
Jokowi yesterday introduced Tri Rismaharini as Minister of Social Affairs. Then Sandiaga Uno as Minister of Tourism and Creative Economy replaced Wisnutama.
Budi Gunadi Sadikin was appointed Minister of Health replacing Terawan Agus Putranto.
The post of Minister of Religion is now given to Yaqut Cholil Quomas in replacement of Fachrul Razi. Sakti Wahyu Trenggono was appointed Minister of Maritime Affairs and Fisheries, and finally M. Lutfi replaced Agus Suparmanto as Minister of Commerce.
In addition to domestic stocks, positive sentiment also came from external ones. European stock markets on Tuesday local time managed to strengthen after experiencing a massive selling action the day before. That means that the panic of market players due to the corona virus mutation has started to subside.
Technically, JCI yesterday was just shy of the 6,000 psychological level yesterday. You can still hold on to it, which means JCI still has momentum to get stronger.
The beginning of JCI’s strengthening momentum began on Thursday (11/5/2020) when White Marubozu appeared on the daily candlestick chart.
At that time, JCI opened operations at the 5,161.39 level, which was also the lowest daily level, and ended operations at the 5,260.326 level, as well as the highest daily level.
level open equal to lowand close equal to high that’s what is called White Marubozu.
 Chart: Daily IHSGPhoto: 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 chart is back in overbought territory. 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 also in the area oversold, thus giving the opportunity to climb today.
The closest resistance is in the 6,070 range, if JCI breaks down there is a chance to strengthen to 6,100 to 6,120.
While support is in the 6,000 to 5,990 range, if it passes and stalls below it, JCI will take action. profit taking it will resurface and risk bringing JCI to 5,960. The next support is in the range of 5,910 to 5,900.
CNBC INDONESIA RESEARCH TEAM
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