JCI Strengthening Trend Continues, Today Preparing Towards 5,800

JAKARTA - The Jakarta Composite Index (JCI) opened higher on trading Wednesday, November 25. JCI opened higher by 0.78 percent or 44.34 points to the level of 5,745.37.

Opening the trade, 103 stocks rose, 2 shares fell, and 34 stocks remained stagnant. Trading volume at the opening was recorded at 213.05 million shares with a transaction value of Rp186.04 billion.

JCI movement in today's trading is expected to continue the bullish trend or continued strengthening, after all yesterday's transactions were in the green zone and ended up 0.85 percent to 5,701 levels.

According to PT Binaartha Parama Sekuritas analyst, Muhammad Nafan Aji Gusta Utama, currently the JCI has a support-resistance range at the level of 5,628-5,715.

"Technically it indicates a potential bullish continuation in the JCI movement, so that the index has the opportunity to head to the resistance level," Nafan said in his research.

He said the potential for further strengthening in the JCI rate could be exploited by investors by accumulating the purchase of shares of PT Barito Pacific Tbk (BRPT), PT XL Axiata Tbk (EXCL), PT Indika Energy Tbk (INDY), PT Kalbe Farma Tbk (KLBF), and PT J Resources Tbk (PSAB).

Meanwhile, according to PT Reliance Sekuritas Indonesia Tbk (RELI) analyst, Lanjar Nafi Taulat Ibrahimsyah, strengthening the JCI will be even more limited. He stated that the JCI was quite strong and managed to breakout the psychological resistance at the 5,700 level which seemed to ignore the overbought condition.

According to Lanjar, the next JCI movement will try to stay above the psychological level of 5,700, even though it will be overshadowed by profit taking.

"So, we estimate that JCI has limited potential to strengthen, because it is overshadowed by profit taking, the support-resistance range is at the level of 5,716-5,622," he said.