The JCI Is Projected To Continue To Weaken On Wednesday, These 3 Stocks Are Recommended

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to continue its weakening on Wednesday, January 26 after closing trading in negative territory yesterday with a decline of 1.3 percent or 86.9 points, so that it parked at the level of 6.568.17.

Artha Sekuritas analyst Dennies Christopher Jordan said the JCI closed lower yesterday following the weakening of European stock markets.

"The selling action was driven by the anticipation of the Fed's meeting which is feared to raise interest rates more quickly," said Dennies in his research.

In addition, according to him, investors tend to take profit taking ahead of the Lunar New Year. As for tomorrow's trading, Dennis predicts the JCI will continue to weaken.

He explained, technically the candlestick formed a long black body with a widening stochastic after forming a dead cross and MA50 breakdown. According to him, this indicates that it will continue to weaken with strong support at the lower Bollinger band level.

"Investors will still anticipate the results of the Fed meeting," he said.

For today's trading, Artha Sekuritas estimates the JCI will move with support at 6.516 and 6.465, as well as resistance at 6.625 and 6.683. The recommended stocks include PT Medco International Tbk (MEDC), PT Wijaya Karya Gedung Tbk (WEGE), and PT Media Nusantara Citra Tbk (MNCN).