As in previous years presented in the chart below, JCI is demonstrating a relatively sideways movement in the month of Ramadan (t-20 before the Eid al-Fitr). In the last four years, JCI only rose or fell 5% from the T-20. But after the holiday, the movement becomes stronger every time, rising in even-numbered years, and falling in odd-numbered years.
Similar to its history, JCI has been experiencing a sideways movement since June 7, 2016, only down by less than 4%. Movement can be expected to be strong after the holiday in this year, too. And as in the other even-numbered years, the movement is expected to be positive.
Fundamental factors that drive this positive trend will most likely come from the results of the Brexit poll which will be held today. JCI’s sideways movement last month was due to the unpredictability of investors waiting for the decision that can change the world’s financial industry. Therefore, do not be surprised if it will be the same factor that will drive JCI after the holiday. The Brexit results will likely be announced tomorrow, but will most probably be put aside because of the week-long holiday when investors rarely take big decisions.
Add Comment