Over the past week, the JCI was still able to continue its rally supported by the cut in BI-7DRRR interest rate. However, this momentum seems to start to weaken along with the increase in Covid-19 cases in Jakarta. After experiencing a rally for almost 2 months, JCI may decline this week with a movement range of 5,400-5,600.
JCI still continued to rally supported by the sentiment from cuts to BI-7DRRR. Today the market will test the resistance level at 5,613. However, investors still need to be aware of the potentials for profit taking after a 5-day long gains.
In the domestic market, investors will observe the results of today’s Board of Governors Meeting (RDG). The upward trend in the JCI was also driven by net buying from foreign investors. Technically, the space for the JCI to increase tends to be limited with movement ranging in 5,498 – 5,613.
As for JCI movement today, it is predicted to be lacking new sentiments. Technically, RSI indicator is at 73.8 that indicates overbought and prone to decline. The range of JCI movement is in 5,462-5,577.
Indonesia MSCI Index will undergo rebalancing for November 2020, where there will be several changes to its constituents.
Meanwhile, this news on Moderna vaccine development is expected to also push IHSG up today, following the rally of almost all global markets. In the short term, JCI has the opportunity to test the resistance level at 5,578.
Majority of JCI was influenced by global sentiments such as Pfizer vaccine trial. In the past week, JCI managed to close in the green by booking net foreign buy amid the release of Consumer Confidence Index (CCI) which is below market expectation.
Although still increased weekly, JCI’s movement started to halt towards the end of the week. This week, investors will look forward to the release of Current Account, and the Bank Indonesia Board of Governors meeting result announcement. The market is expected to consolidate in the range of 5,400-5,500.
Domestically, investors have also started profit taking after a 5-day rally that indicated overbought. Meanwhile the JCI movement today may potentially continue yesterday’s decline and test the support level at 5,400.
