Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) turned lower ahead of the closing of the second trading session on Wednesday (1/12/2021).
By 11.30 WIB, the JCI closed down 0.32% to the level of 6,512.83. The index has been moving in the red zone since 11.00 WIB or 30 minutes before closing voice I.
In the early days of trading, the JCI had strengthened and almost broke the psychological level of 6,600. The index moved in a range of its lowest at 6,508.86 and its highest at 6,593.07.
Trading data noted that 188 stocks rose, 347 stocks weakened and 118 stocks remained stagnant. The transaction value almost penetrated Rp. 9.5 trillion and foreign net sells to Rp. 201 billion in the regular market.
JCI actually weakened when the majority of major Asian stock markets rose nearly 1%. Whereas last night the three main benchmark indexes weakened nearly 2% on their own.
The market is still watching the development of the Omicron Covid-19 variant, which is the biggest risk to the global economy and financial market.
Domestically, sentiment comes from the release of economic data in the form of manufacturing PMI and inflation.
IHS Markit noted that Indonesia’s manufacturing PMI fell to a level of 53.9 in November 2021 from 57.2 in the previous month. Despite the decline, manufacturing activity was still expansive and recorded an increase of above 50 for 3 consecutive months amid the declining trend of Covid-19 in the country.
Then in terms of inflation, BPS announced inflation of 1.75% year on year (yoy) in November 2021. This was the highest inflation throughout 2021 and higher than the consensus compiled by CNBC Indonesia.
After moving with high volatility in session I, what is the direction of movement of the JCI in session II? Here is the technical review.
Technical Analysis
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Photo: Son Technical- – |
JCI movement using the hourly period of the Boillinger Band (BB) indicator through the method of the upper limit area (resistance) and the lower limit (support).
If you look at the JCI closing position, the index must pass the nearest resistance level at 6,589 to form a trend bullish.
Meanwhile, the index must pass the nearest support level at the psychological level of 6,510 to experience a bearish trend.
The Relative Strength Index (RSI) indicator as a momentum indicator that compares the amount of the latest price increase and decrease in a period of time and serves to detect overbought conditions above the 70-80 level and oversold below the 30-80 level. 20.
Currently the RSI is in the 33.85 area, which is near the oversold level. If you look at these technical indicators, the selling pressure on the JCI will be getting smaller and there is potential for market players to take advantage of this momentum by buying actions that could make the index rebound.
The index needs to pass (break) one of the resistance or support levels, to see the direction of the next movement.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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