JCI End of Week Has the Opportunity to Strengthen, Check the Stock Recommendations

JAKARTA - The Composite Stock Price Index (JCI) still has the opportunity to strengthen in today's trading, Friday, July 24, after yesterday closed down 0.3 percent to 6,315.3.

Phintraco Sekuritas in its research said that the index had reached 6,454, rebounding from the correction the day before, driven by optimism about Indonesia's still solid economic outlook.

However, the continued rise in crude oil prices at the highest level in the last six weeks, makes market participants tend to start being cautious and trading short term.

Crude oil prices rose more than 3 percent, with WTI and Brent oil prices above the $89 per barrel and $97 per barrel levels, respectively, due to the escalation of the US-Iran conflict.

Phintraco Sekuritas revealed technically, the Stochastic RSI indicator of the JCI experienced a Death Cross in the overbought area. However, the MACD histogram is still in the positive area although it has slightly narrowed.

"So it is estimated that if the JCI breaks down from the MA5 level of around 6,279, it has the potential to test the next support level at 6,200-6,250," wrote Phintraco Sekuritas.

Meanwhile, MNC Sekuritas estimates that the JCI still has the opportunity to strengthen to test the level of 6,470-6,667.

MNC Sekuritas recommends four stocks for trading today, namely BBRI, BRPT, EMAS and EXCL.