Jakarta, CNBC Indonesia – The good news related to the Omicron coronavirus made the Jakarta Composite Index (JCI) successfully gain 0.85% to 6,601,569 on Tuesday’s trading. Foreign investors also took net buying (net buy) worth IDR 104 billion.
Leading infectious disease expert from the United States (US) dr. Anthony Fauci said that the initial indications of infection cases due to the new variant of the corona virus B.1.1.529 or Omicron were no more dangerous than other variants.
“While it’s too early to really make a definitive statement about it, so far there doesn’t seem to be a major degree of severity,” Fauci said, quoted by Al Jazeera.
“So far, the signal is a bit encouraging. But we really have to be careful before we make any decisions that it’s not too severe, or it really doesn’t cause severe disease, like Delta,” he added.
Omicron is said to cause mild symptoms to make the US stock market (Wall Street) skyrocketed Tuesday. The Dow Jones gained 1.4%, the S&P 200 more than 2%, and the Nasdaq took the lead after rocketing more than 3%.
The rapid direction of the world stock exchanges certainly gave positive sentiment to the Asian market on Wednesday (8/12) trading, including the JCI.
Technically, there have been no changes to the levels to watch out for. JCI has the opportunity to strengthen to 6,630 as long as it is able to stay above the 6,600 level. The next resistance is in the range of 6,670.
IHGS recently fluctuated and tended to decline as a result of the Doji and Shooting star duet patterns. JCI has also fallen since Friday (26/11).
The Doji pattern was formed at the beginning of Monday (22/11) which gave a neutral signal. This means that market participants are still hesitant to determine the direction, whether to continue up or go back down.
Graph: Daily JCI
Then on Thursday (25/11), the JCI, which failed to maintain a sharp strengthening, formed a Shooting Star pattern. This pattern is a signal of a reversal or reversal of the direction of the price of an asset.
The decline in JCI is always restrained by the 50-day moving average (50/MA 50), before finally rebound.
The 50 MA is now in the range of 6,550 to 6,560 which is the closest support that will hold back if the JCI is corrected again.
The risk of a correction can be seen from the 1 hour chart where the Stochastic indicator is in the oversold area (oversold).
Graph: JCI 1 Hour
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.
In addition, the JCI also formed gap (gap) at the opening of yesterday’s trading. Technically, the movement of an asset will close the gap first.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)