JAKARTA - The Composite Stock Price Index (JCI) is predicted to continue to strengthen in today's trading, Wednesday, December 17, after yesterday closed up 0.43 percent or 36.81 points to the level of 8,686.47.
Phintraco Sekuritas in its research assessed that investors are still waiting and seeing amid increasing global uncertainty. Market participants tend to trade short-term while waiting for the release of a number of global economic data as well as the results of several central bank meetings this week.
Cautionary pressure also comes from the movement of the rupiah exchange rate which closed at a weakened level of Rp16,685 per US dollar in the spot market, although the US dollar index tends to weaken. Investors also pay attention to the announcement of the results of the Bank Indonesia Board of Governors (RDG) meeting which will be released on Wednesday.
Bank Indonesia is expected to maintain the BI Rate at the level of 4.75 percent amid the weakening of the rupiah.
From a technical perspective, the MACD indicator still shows a widening negative slope. However, Stochastic RSI has been in the oversold area and has the potential to form a golden cross.
In addition, the JCI managed to close above the MA5 level. With this condition, the JCI is expected to still move consolidation in the range of 8,600-8,750. The support level is at 8,600 with a pivot at 8,700 and resistance at 8,750.
"If the JCI is able to hold above 8,750, then the opportunity for further strengthening is still open," explained Phintraco Sekuritas.
Globally, the majority of Asian exchanges closed lower on Tuesday as concerns over China's economic conditions and lack of policy support increased. In Europe, indexes opened lower due to a correction in defense stocks amid continued talks to end the war in Ukraine. Meanwhile, Wall Street futures indexes moved lower ahead of the release of US nonfarm payrolls (NFP) data and consumer inflation data.
For today's trading, Phintraco Securities recommends a number of stocks, including PT Sumber Alfaria Trijaya Tbk (AMRT), PT Barito Pacific Tbk (BRPT), PT Apexindo Pratama Duta Tbk (APEX), PT Unilever Indonesia Tbk (UNVR), and PT Samudera Indonesia Tbk (SMDR).
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