It is not because today is a nice day to write a blog, since today is 07/08/09. The reason I post some words today is that the Jakarta Composite Index (JCI) is approaching the important 2400 level. Why I think this level is a crucial level is because in July 2007 the JCI had failed to pass this level. In August 2007, about 3 weeks after that failure, the JCI was able to start a huge rally that took it to a historical record high at 2800. On that failure, the JCI was having a retracement that last about 3 weeks. The retracement was around 61.8%, since its rally during March 2007 until July 2007.
Today, the JCI closed at 2349, 50 points away from this important level. Current rally, which was started on March 2009 has given the JCI 80% return. If you look at the trend line obviously you could see that this rally accelerating very fast. 80% gain in just 5 months.
While we are waiting for some unemployment data from the US tonight, I think it would be wise to get some cash aside and wait for this important economic data result. In the near term, I am expecting some retracement for some weeks. If the JCI could pass the 2400, I believe the JCI is possible in reaching a new historical high.
Today, the JCI closed at 2349, 50 points away from this important level. Current rally, which was started on March 2009 has given the JCI 80% return. If you look at the trend line obviously you could see that this rally accelerating very fast. 80% gain in just 5 months.
While we are waiting for some unemployment data from the US tonight, I think it would be wise to get some cash aside and wait for this important economic data result. In the near term, I am expecting some retracement for some weeks. If the JCI could pass the 2400, I believe the JCI is possible in reaching a new historical high.
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