Foreign net sell actions that reached IDR2 trillion for 2 days straight have boosted JCI to a position before the fall on March. For today, the JCI still has a chance to test level 5,526. However, investors should be alert of the indicator that shows the market’s position to be further in the overbought area.
The market rallied for 4 consecutive days, sending JCI further away from the consolidation area and towards the psychological level of 5500. However, today’s JCI movement is quite prone to correction because it is already in the overbought area. Investors will also be aware of the open gap that occurred yesterday in the area of 5,395-5,412.
From within the country, news of the Covid-19 vaccine development also has the potential to be a good sentiment for the stock market. Technically, the JCI has almost entered the overbought area after recording rallies for the last 3 days.
JCI closed significantly higher last week. Some of the domestic sentiments were inflation and PMI data which recorded an increase and the Q3/2020 GDP which still contracted. Globally, investors paid close attention to the result of US election.
The direction of JCI movement this week will still be influenced by the results of the US presidential election and the release of Current Account data for the third quarter of 2020. Meanwhile, technically, the index still has the opportunity to continue gaining towards the next resistance level at 5,371.
The JCI managed to close sharply higher, in line with almost all global exchanges. This increase was also accompanied by a return of foreign funds which recorded a net buy of IDR711 billion. Technically, JCI has managed to penetrate the resistance area, with the opportunity to continue strengthening to the level of 5,310.
From the domestic market, investors will be watching the release of Indonesia’s GDP data for the third quarter of 2020, which by consensus is expected to contract again by 3% yoy. Technically, the JCI is expected to fluctuate in the range of 5,065 – 5,132.
The JCI movement today will be heavily influenced by the results of the US presidential election and the strengthening of commodity prices. Technically, the market still has the opportunity to continue yesterday’s increase with a range of movement of 5,130 – 5,177.
The JCI weakening yesterday was in contrast to the rally that occurred in almost all global exchanges. In today’s trading, JCI will continue its consolidation in the range 5.063 – 5,168 with limited opportunities to strengthen supported by economic data showing slight improvement.
