JKSE closes lower for the 2nd day in a row
IDX Composite Index (JKSE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JKSE finished Wednesday at 5058.48 losing Rp42.39 (-0.83%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 5091.29, the market confirmed its breakout through the previous session low after trading up to Rp39.54 below it intraday.
Daily Candlestick Chart (JKSE as at Sep 16, 2020):
Wednesday's trading range has been Rp65.54 (1.28%), that's slightly below the last trading month's daily average range of Rp84.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for JKSE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 5014.76 (S1). Prices are trading close to the key technical resistance level at 5119.68 (R1).
Though the index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for IDX Composite. Out of 453 times, JKSE closed higher 54.75% 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 61.59% with an average market move of 0.39%.