Wall Street Falls, Be Careful JCI Collapses!

Jakarta, CNBC Indonesia – The Composite Stock Price Index (JCI) closed up 2.24% at the level of 6,793.41 and successfully penetrated the psychological level of 6,700 and stuck to the psychological level of 6,800 on Wednesday (18/5/2022).

Domestically, on Tuesday (17/5/2022) the Central Statistics Agency (BPS) released Indonesia’s trade balance as of April, up 47.76% on an annual basis to US$ 27.32 billion, the highest of all time.

The driver was exports of mining products which reached US$ 6.41 billion or grew 182.48% yoy. With fantastic export achievements, it is believed that the Indonesian economy will not be too depressed by the impact of the Ukrainian conflict.

Exports of mineral fuels including coal were recorded at US$ 14,143.9 million, up 78.14% yoy. Meanwhile, when compared to the previous month, exports of this product rose 13.88%. The performance of coal issuers is also believed to be positive in the second quarter of 2022.

Negative sentiment came from the US stock exchange, aka Wall Street, which at the close of trading this morning collapsed badly, which of course brought bad weather to Asian capital markets this morning.

Technical analysis

Photo: Technical
Technical

JCI movements are analyzed based on the daily period (daily) and use the Bollinger Band (BB) indicator to determine the area of ​​the upper limit (resistance) and the lower limit (support).

If you look at the closing level of the JCI and the BB indicator earlier this week, it appears that the index closed at the middle limit of the BB.

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JCI movement is also seen with other technical indicators, namely the Relative Strength Index (RSI) which measures momentum.

Please note, the RSI is a momentum indicator that compares the magnitude of the recent price increase and decrease over a period of time.

The RSI indicator is used to detect overbought conditions above the 70-80 level and oversold conditions below the 30 level.

Based on the RSI indicator, which is at 39, the JCI is already neutral after coming out of the oversold zone after flying for two days in a row, so it has the potential to go down first.

For today’s trading, at least the JCI will move within the range of 6,708-6,813 first and potentially be corrected. The index needs to break (break) one of the resistance or support levels, to see the direction of the next movement.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

Next Article

JCI Session 1 Closed Almost Flat, Session 2 Could Move Red

(trp/vap)


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