JAKARTA: Jakarta Composite Index is predicted to move in mixed direction with a tendency to weaken. Index is still overshadowed by Europe Financial Crisis and China production and inflation data. JCI will likely to move in support-resistance range of 3,790 – 3,859.
The following are recommendation from stock brokerages:
In today’s trading, JCI will likely to move sideways with range limit at 3,375 – 3,859. Several indicators such as stochastic has started to show an overbought trend of JCI.
From Bill William, the acceleration has started to weaken. The second ADX directional indicator moved flat waiting for confirmation and further index movement. Stocks to watch: BWPT, KRAS, BDMN, and RALS.
On last Friday trading, JCI declined slightly with consolidated movement tendency. Negative sentiments came from several poor economic data expectations and Spain rating which was downgraded by Fitch to BBB.
In today’s market, the index will likely to move sideways with consolidated sentiment and it is advised for a short-term trading.
Stocks to watch: CPIN, HRUM, JSMR, and SMGR
Last week, JCI closed 15.26 points (-0.39%) lower to 3,825.32 on 4.48 million lots transaction valuing IDR2.2 trillion.
According to a technical analysis, JCI will likely to move sideways. After several days increase, JCI entered consolidated period in support weekly support area. During the period, JCI will move in the range of 3,750 – 3,875, with limited sell resistance in all sectors except manufacture and consumer goods.
On last Friday, foreign investors had a net buy amounting to IDR98.33 billion with the most bought stocks are GGRM, BMRI, BBRI, UNTR, and SMGR.
Almost all sectors of the index declined except agriculture (+0.04%), consumer (+2.42%), and manufacture (+0.31%).
Among 443 stocks, 74 stocks declined, 167 strengthened, 78 stagnant, and 131 stocks were not traded.
JCI will likely to move in mixed direction with a tendency to weaken. We view the index will still ve overshadowed by Europe crisis issue. Todays’ support-resistance range are 3,790 – 3,850.
The continuing profit taking action occurred on last week trading. The uncertainty from stimulus launching and Spain rating downgrade hampered the positive sentiment and cut down China Central Bank interest rate.
According to cumulative analysis, the index was actually strengthened last week. JCI increased 0.67% compared to last week, supported by consumer and banking stocks buying action.
According to technical analysis, the index will likely to continue its decline in the range of 3,800 – 3,850. China economic datea such as inflation and production rate wo be released on Saturday and the development on Europe Debt Crisis could give sentiments to the index.
Stocks to watch for day trading: GGRM, HEXA, KLBF, and JSMR. (T07/msw)