JCI is Searching for Bottom
The JCI (Jakarta Composite Index) is going down for three days straight now leaving a 2 break-out gap between it.
So what actually does this mean? I hope that I can do more technical analysis on it as requested by Mas Carlos but unfortunately I can’t.
This week I have my end-term test and tomorrow’s topic will be international financial management (which needs alot of material to be “massaged”) and I have no access to the trading data whatsoever at the moment for today. I haven’t visit my broker for quite some time now and the data provided by Yahoo isn’t very helpful anyway (there’s around 5 days delay for the daily historical data).
So I hope that you’re satisfied with a quick TA I’ve done without the help of any software (except Yahoo for the chart).
My analysis is that the bearish trend might stop briefly tomorrow for a minor rebound (dead cat bounce anyone?). This is because for the two gap that was made during the three days trade. Some people will start buying stocks because they think that it’s cheap enough. However, the market in macro-view is still searching for its bottom, so it’s not a good time for a buy-and-hold strategy. There’s no major reversal signal yet. And with the macro-fundamental going awry by Bernake’s statement of Fed interest hike, technical rebound will still be out of reach.
