JCI: a Record High

the Jakarta Composite Index (JCI) has been rallying since mid February 2010 to reach a new record high in its history at around 2900. The foreign investors are the major buyer with total fresh fund inflow more than 3 trillion rupiah for the 1Q 2010.

In the last few days, the market has some correction. I believe this is just a normal correction, while the overall trend is still bullish.


(Source Dongsuh Securities, edited)

If the JCI could maintain its first uptrend support, the JCI would continue the rally again in the next few days. But I prefer to choose the second possibility. The JCI might not be able to maintain its first uptrend support, hence it would retrace to around 2730 (38.2% fibonacci retracement). Hence, if this is the case, I suggest to take some profit and wait until JCI reach 2730 that might be happen in about a 2-3 weeks, and then get along with the bull again.