JCI has suffered enough, today is ready to rise!

Jakarta, CNBC Indonesia – The Jakarta Composite Index (IHSG) fell 0.18% to 5,230.19 in early trading last week (7/9/2020).

Trade data noted that foreign investors made net selling of Rp 726 billion in the regular market, with a transaction value of Rp 6 trillion.

JCI followed the decline of the majority of major Asian stock exchanges yesterday due to concerns over heating up US-China relations. This comes after the US government reportedly considered imposing export restrictions for Semiconductor Manufacturing International Corporation (SMIC), China’s largest semiconductor producer.

Meanwhile, today, Tuesday (8/9/2020), JCI has the opportunity to rise to see the movement of the US stock index futures (Futures) soaring, after experiencing a sell-off on the spot market last Friday. The Dow Jones Futures rose 220 points, the S&P 500 Futures rose 0.5%, while the Nasdaq Futures remained flat.

Some of the major Asian exchanges that have been opened have also begun to turn green, an indication of improving sentiment in global market players.

Technically, there has been no change in levels that must be considered considering the JCI weakened not significantly at the beginning of last week. As long as it is stuck below, it returns below 5,270, so that the pressure will increase. The stochastic indicator on the hourly chart has moved from the oversold area.

Stochastic is leading indicator, or indicators that initiate price movements. When Stochastic reaches the overbought area (above 80) or oversold (below 20), the price of an instrument has a chance to reverse.

This means that when oversold, JCI has a chance to strengthen.

The 5,270 level is now the closest resistance, if it is successfully broken, JCI has the opportunity to strengthen to 5,300. Further resistance is in the range of 5,330.

Support Nearest is in the range of 5,200, if the JCI is passed there is a risk of weakening to 5,163 which is 50% Fibonnaci Retracement on the daily chart, so it becomes strong support.

Foto: Refinitiv jkse- –

The fiber pulled from a September 2019 high of 6,414 to this year’s weakest level of 3,911 on the daily chart. If the 5,163 level is broken, JCI is at risk of falling deeper.

CNBC INDONESIA RESEARCH TEAM

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