JCI Wednesday Tests Level 7.700, See Stock Recommendations

JAKARTA - The composite stock price index (JCI) has the potential to test the next resistance level at 7,700 on today's trading, Wednesday, April 15, after yesterday closed up 2.34 percent to 7,675.9.

Phintraco Sekuritas in its research said the strengthening of the index was supported by an increase in the majority of indices on the Asian stock exchange, a correction in crude oil prices, and the hope that negotiations between the US and Iran are still open.

Conglomerate and banking stocks were the biggest contributors to the JCI's rise. Based on sectors, the infrastructure sector posted the biggest gain (5.62 percent).

Technically, MACD continues to strengthen and Stochastic RSI is moving in the overbought area. JCI formed a gap at 7,527.

"It is estimated that the JCI has the potential to test the next resistance level at 7,700. If the JCI is able to hold above the 7,700 level, then the JCI is expected to have the opportunity to test the MA50 level around the 7,800 level," wrote Phintraco Sekuritas.

However, it is necessary to start being aware of the potential for profit taking in the short term, given the condition of the JCI which has entered the overbought area.

WTI and Brent crude prices corrected by around 2 percent and 0.9 percent at the level of 96 US dollars per barrel and 98 US dollars per barrel until this afternoon, Tuesday.

This correction was triggered by a statement from the IEA predicting that the decline in oil demand would spread amid supply shortages and higher average prices due to the prolonged conflict in the Middle East.

The IEA's latest forecast shows that global oil demand could fall by as much as the decline in demand during the COVID-19 pandemic.

In addition, the correction in crude oil prices was also triggered by reports that showed that negotiations between the US and Iran could resume as soon as this week.

However, the increase in the JCI was not followed by the movement of the rupiah which closed down 0.09 percent to the level of Rp17,110 per US dollar on Tuesday, April 14. This level is the weakest closing level for the rupiah against the US dollar.

The rupiah weakened even though the US dollar was also undergoing a correction. Concerns about the outlook for the domestic economy are expected to be a factor driving the weakening of the rupiah.

Phintraco Sekuritas recommends five stocks today, namely TOBA, ESSA, TINS, HRUM and ELSA.