JKSE unable to break through key resistance level
IDX Composite Index (JKSE) Technical Analysis Report for Feb 17, 2020 | by Techniquant Editorial Team
JKSE finished Monday at 5867.52 gaining Rp0.58 (0.01%). Trading up to Rp10.31 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 5th, JKSE gained 0.35% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (JKSE as at Feb 17, 2020):
Monday's trading range has been Rp24.86 (0.42%), that's below the last trading month's daily average range of Rp53.19. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for JKSE.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 5877.20 (R1), IDX Composite closed below it after spiking up to 5878.46 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 5843.43 where further sell stops could get activated. 2019's low at 5767.40 is within reach and we might see further downside momentum should the index break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for IDX Composite. Out of 135 times, JKSE closed higher 57.04% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.96% with an average market move of 0.47%.