JKSE closes lower for the 3rd day in a row
IDX Composite Index (JKSE) Technical Analysis Report for Sep 17, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JKSE ended Thursday at 5038.40 losing Rp20.08 (-0.4%). Trading Rp40.63 higher after the open, the stock index was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 5051.75, the market confirmed its breakout through the previous session low after trading up to Rp38.56 below it intraday.
Daily Candlestick Chart (JKSE as at Sep 17, 2020):
Thursday's trading range has been Rp86.39 (1.71%), that's slightly above the last trading month's daily average range of Rp85.38. Weekly volatility is also higher, being 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 Bearish Spinning Top.
After trading down to 5013.19 earlier during the day, IDX Composite bounced off the key technical support level at 5014.76 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 7th, JKSE gained 0.27% on the following trading day. 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 could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for IDX Composite. Out of 357 times, JKSE closed higher 61.06% 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 57.98% with an average market move of 0.17%.