Home » Business » Furious 13%, IHSG Get Ready to Go Through 5,800 Today!

Furious 13%, IHSG Get Ready to Go Through 5,800 Today!

Jakarta, CNBC IndonesiaThe Composite Stock Price Index (JCI) shot up 1.42% to 5,759.91 in trading yesterday (26/11/2020). Trade data noted that foreign investors made net buying of Rp. 510 billion in the regular market with a transaction value of Rp. 13.4 trillion.

The JCI has now recorded a gain of almost 13% in the last 16 trades, and is at its highest level since February 26.

Market players continue to hunt for risky assets because life expectancy will return to normal soon after vaccines from US pharmaceutical companies, Pfizer and Moderna, and British pharmaceutical company AstraZeneca are claimed to be effective in overcoming the corona virus by up to 90% or more and do not cause serious side effects.


In addition, US President Donald Trump has finally opened the door to the transition to President-elect Joseph ‘Joe’ Biden’s administration, making market players even more cheerful.

Not to mention Biden who reportedly appointed former chairman of the Federal Reserve (The Fed), Janet Yellen, as finance minister. Market participants believe that the 74-year-old woman will focus on fixing the economy, and not get involved in political problems.

Meanwhile, the United States (US) Wall Street stock exchange for the Thanksgiving holiday last Thursday practically did not provide sentiment to the Asian market this morning, Friday (27/11/2020).

Technically, IHGS back above 5,700 yesterday, continuing its long rally in the last 3 weeks.

The beginning of the sharp strengthening of the JCI began Thursday (5/11/2020) when White Marubozu appeared on the daily candle stick chart.

At that time, JCI opened trading at the level of 5,161.39, which was also the lowest daily level, and ended trading at the level of 5,260.326, as well as the daily highest level.

Level open equal to low, and close equal to high that is what is called White Marubozu.

White Marubozu is a signal that the value of an asset will strengthen again. It was proven afterwards that the JCI continued to strengthen.

The good news is, on Monday (11/23/2020) the JCI re-formed the White Marubozu pattern, so there is a potential for the rally to continue again, and it is possible to return to the 6,000 level in the next few days.

Graphic: Daily IHSG
Foto: Refinitiv-

The IHSG also moves above the moving average of 50 days (moving average / MA 50), 100 days (MA 100), and 200 days (MA 200).

However, the stochastic indicator on the daily chart is still in the overbought area (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.

jkseGraph: IHSG 1 Hour
Foto: Refinitiv-

Stochastic on the 1 hour chart is moving upwards but has not yet entered territory overbought.

The closest resistance is now at 5,760 to 5,770, if the JCI is crossed again there is a chance to strengthen to 5,800 to 5,810.

But as long as it stays below resistance, the JCI is at risk of a correction. Support closest is in the range of 5,720, if broken JCI has the risk of falling to 5,700 to 5,690.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

(pap / pap)


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