CASE STUDY – JAKARTA COMPOSITE INDEX
The following is the Chart for Jakarta Composite Index. Does it look like it is hitting a ‘Wall of Worry’ or is it a Double Top? The following are probable signs that a Deep Reversal is on the cards.
- Resistance at 4235
- RSI Divergence
- MACD Divergence
- Index making New High but not Individual Stocks. More than 95% of the stocks are trading below their Highs. That means the market is not as strong as it perceived to be. Leading issues are not following the trend and that is a sign of weakness. Big boys are on the way out. In fact when it manage to make a new high on 04/05/12, there are more down issues than up issues.
Support is around 4100. Hope it doesn’t break. So please let me know if you have any other ideas. I would like to hear second opinions. Please pan to the right to see the whole chart.