JCI Tuesday Projected To Strengthen, Four Stocks Worth Paying Attention To
JAKARTA - The Composite Stock Price Index (JCI) is predicted to strengthen in today's trading, Tuesday, July 9. Stocknow in its research, revealed that the JCI will move in the psychological resistance range at the level of 7,300 and support dynamic MA 5 at the level of 7,209.
Stocknow said the JCI today has the potential to continue its strengthening, after last week, the JCI had shot up more than 2 percent. Of course, this is very interesting in the eyes of investors and can convince investors that the Indonesian stock market has recovered in the second semester of 2024.
"In addition, today's JCI strengthening is also supported by the increase in BBCA shares and the decline in sales volume from BREN shares. So, this is a positive sentiment for the JCI today," wrote Stocknow.
Stocknow explained that Fed Chair Jerome Powell will testify before the Senate and House of Representatives on Tuesday and Wednesday (9-10 July 2024), with most of his testimony expected to focus on monetary policy.
Last week, Powell hinted that although the Fed had made some progress to reduce inflation, policymakers still didn't have enough confidence to start cutting interest rates. The Fed's mistake in meeting June reinforces this idea, highlighting a cautious approach from policymakers.
Labor data, which is weaker than expected from last week, raises expectations that the labor market cools, providing Feds with more push to start cutting interest rates. However, inflation is likely to be the main point of central bank's consideration in lowering interest rates.
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The consumer price index will be released on Thursday 11 July and is expected to rise 0.1 percent m/m and 3.1 percent yo/y, while the core CPI is expected to rise 0.2 percent. Traders seem to expect more than 72 percent of the chance to lower interest rates by 25 basis points in September, up from 57.9 percent of the opportunities seen last week.
Meanwhile, Stocknow recommends stocks of SMGR, KLBF, ANTM, and PWON to be considered in today's trading.