Domestically, developments regarding the US stimulus assistance amidst lack of domestic sentiment are expected to cause the JCI to continue its consolidation phase with a tendency to decline. Technically, the JCI movement range for today is between 5,057-5,132.
The tension between China and Australia resulted in a ban on coal imports
After being able to strengthen yesterday after the announcement of China’s GDP, there is no new sentiment for the JCI today. Market participants will still be waiting for the release of the Q3/2020 financial reports. Technically, JCI is expected to be in a consolidation phase in the range 5,081 – 5,191.
JCI managed to rebound and enter the green zone despite relatively disappointing economic data. On the other hand, market participants responded positively the passage of Job Creation Law which projected to bring positive impact to Indonesian economy.
JCI movement last week was able to rise by 1% every week after the release of trade balance data and Bank Indonesia’s decision to hold the benchmark interest rate. This week, investors will be watching the announcement of Q3/2020 GDP from China which is expected to continue to grow from the previous quarter.
JCI yesterday was hit by considerable profit taking after an upward rally for nearly 2 weeks. Technically, the candlestick has formed an evening star pattern which signals a reversal.
Domestically, investors are paying close attention to the Indonesia trade balance release today. By consensus, the trade balance position is predicted to still be a surplus by USD2.6 billion. Technically, the JCI rally has brought it to the resistance area with the RSI indicator starting to show signs of overbought.
The JCI movement today will still be influenced by developments around the Job Creation Law which is still rather controversial with the opposition. But the market also have good news from the daily Covid-19 cases in Indonesia which fell below 4,000 cases over the past 2 days. Technically, the JCI position is in the upper Bollinger Band with limited room for an increase.
The re-enforcement of Transitional PSBB is expected to positively impact shopping center companies.
