Technical Review on IHSG

Recent IHSG direction confused the most of us. There are many apprehensive about market correction among fellow traders and investor. For “buy and hold” performers, they felt that market is overbought and too high, symptoms of correction have seen.

Technically speaking, recent IHSG chart is dilemmatic. It gives positive signal in daily chart, MACD golden Cross. Just the opposite, weekly chart gives negative signal, MACD Dead Cross.





Considering other indicators, such as Stochastic and William%R, IHSG is nearly at overbought area in daily chart. Meanwhile in weekly chart, IHSG already at overbought area.





I think, it is hard to conclude that correction on IHSG is unlikely.

But for the “Trend follower”, as long as a valid confirmation of change on trend direction is not seen yet, bullish in the mind is still intact.

Trend follower used to confirm market direction with Moving Average (MA) indicator, MA10, MA20, MA50, MA100 and MA200.
Currently, IHSG price is above all MA level, which is mean the market is still bullish.

But it is wise to set the cut loss point tightly, in order to reduce loss or save on the hand capital gain if the market direction changes.

I have conviction that market will try and push IHSG to make a new high.
But who knows what happened after a new high occur.

Well, have a safe trading and investing.