The rebound in Indonesia’s Jakarta Composite Index (JCI) could continue from here following the completion of its triangle pattern.
The surge from the September low was likely halved by the 1-month sideways triangle pattern.
Since the triangle pattern can now be counted complete, we expect the JCI’s rebound to continue from here.
As long as the 4,446 low holds, the triangle (shown on the right chart) is still intact and a strong push above 4,621 would likely send the index shooting towards the 200-day SMA next.
The 62%FR levels of the April- September fall comes in at 4,954 which is also close to the psychological 5,000 mark.
Hence, the 4,800-5,000 levels is a possible level where a turnaround takes place.
Note that the longer term trend is down as prices are trading below the 100-week EMA as well as the 2011-2014 channel. A sharp break below 4,033 would confirm the next downleg towards 3,217 is underway.
Looking higher in the short term. (Read Report)
Source : CIMB Research