JKSE Analysis

Based on the economic data that Indonesia is still growing with a accelerated rate, that now we're almost facing an overheated acceleration. This is one of the things that is worried by our Central Bank Governor, who is thinking a solution for reducing the acceleration of the inflation, who proposed "re-denomination"of IDR, but rejected by the parliament & ordered to find a new solution. This means that foreigner is still eager to invest in our country, as the government bonds are mostly bought by the foreign & also some companies like ASII.

The other fundamental report which support Indonesia Stock Exchange to accelerate is the upgrade rating by Fitch & other rating firms. Especially for Indonesian bonds & stocks become a "investment" grade. This also attract foreign to collect Indonesian stock as we're one of the best performing stock around the world which is keeping making a new high record.

Based on the technical analysis, we can see that JKSE bounced after it touched the support trendline at around 2990-3000 level. This decline was supported by a low volume of trading, even though the last day trading, the investor is still uncertain of the price increment as the volume wasn't big enough, but forming a Bullish Engulfing Pattern which is a bottom bullish reversal pattern, together with the last two days candle forming a hammer.

The indicators of EMA Crossover system failed to form a dead cross, but re-bend upward. JKSE was bounced back from the level of Linnear Regression Line +2 SD and still showing a positive movement. Oscillators are showing good, from MFI, CCI, W%R, Stochastic, RSI are still showing positive movement. MACD seems to form a bottom reversal pattern too.

Based on the chart pattern, the JKSE is forming a symmetrical triangle which is now bounced from the uptrend channel and aiming to breakout the downtrend channel. Once it break out, then the target will be a new high again.

Target : 3070-3085, 3125-3150

Stock analysis is next up!!!

Happy Investing^^

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