MNC Sekuritas Forecasts IHSG Correction Based on Technical Analysis

Current Market Conditions

The Indonesian Composite Index (IHSG) experienced a decline at the start of the week, closing at 8,649.66 on Monday, down 10.84 points or 0.13%. According to Herditya Wicaksana, Head of Retail Research at MNC Sekuritas, the current IHSG movement is in the final phase of wave [iii] from wave 5 under the black label scenario. This technical analysis suggests that the IHSG is poised for a short-term correction to test the 8,464–8,560 range, which would also address the thin gap remaining.

Technical Outlook and Support Levels

In the analysis provided by Herditya Wicaksana, key support levels for the IHSG are identified at 8,553 and 8,493, while resistance levels are noted at 8,714 and 8,821. Under a worst-case scenario (red label), the IHSG is considered to have completed wave (1) and faces the risk of a deeper correction targeting around the 8,000 level. The technical analysis suggests that monitoring these critical levels will be crucial for understanding future market movements.

Market Implications

The potential correction is attributed to the current technical setup of the IHSG, indicating that the market is due for a pullback after recent movements. Investors are advised to watch the identified support and resistance levels closely as they will provide critical signals regarding the index's next major move. The analysis from MNC Sekuritas provides valuable insights for investors looking to navigate the current market conditions and make informed decisions.