Indonesia's benchmark Jakarta Composite Index is eyeing the record high at 5,250 points set in May last year and doing so in a style that leaves little doubt that it will do so. The strength for the next leg up was gathered during a consolidation phase that came in right above what had previously been trend line resistance from that year's peak. It is a classically bullish signal for technical analysts and reinforced by the fact that the Eid holiday had no destabilising effect on the index whatsoever. The index is now above immediate trend line support, setting it up for a push to a new record high, with a first target at 5,300 points before a likely drive on to 5,500 points.
Nicole Elliott is a technical analyst