Our index has been in flatline since several months ago after the plunging from the top which was at around 5200. In the past few months the instability of our index happened due to the Indonesian Bank didn't rise the IB Rate, but in the last two to three months it has been raised significantly.
But I won't talk about the fundamental, I will talk technically in order to see the current position. As the index has been bullish since this month soared from the bottom, I see that it might be the start of the new wave (Elliot wave), which should be wave 1, the rally, and the latest decline is the wave 2. But how long will it go down? We'll see.
Based on the calculation, the plunge from May to late August, each down wave costs around 900 pts, which means the down wave of the Elliot wave (A & C Wave) was quite bad. But, just be cool, as the bad down wave came, the good wave will always follow, as the fundamental of our economy is still much stronger than others.
The question is how much will it go down, and how much will it gain when it go up? This is the answer, the plunge I projected would be to around 4350-4400, but once it bounced back, then it would very likely to be at around 5300-5350. The question is whether it is the time to buy now? I'd say YES it is, but prepare the stop loss level of your every trade as the line is still flat. I'd like to wait when it breaks 4800.
Happy Investing^^
Disclaimer ON!!!
