The JCI Will Continue To Weaken Today, Still Due To The Effect Of The Fed Raising Interest Rates

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is expected to continue its weakening in today's trading, Monday, June 20, after last weekend closed at 6.936.96, down 1.61 percent.

Artha Sekuritas analyst Dennies Christopher Jordan assesses fears of a recession will increase again. Especially, after Switzerland and Britain decided to follow the steps of the US central bank The Fed in raising interest rates.

"Meanwhile, domestic dividend distribution season has not been able to withstand the weakening," said Dennies in his research.

Dennies estimates that technically, the candlestick has the potential to form a lower high and a lower low accompanied by high volume and a widening stochastic.

Previously, the candlestick had formed a deadcross indicating the possibility of a strong bearish or weak trend.

According to Dennies, early this week investors will pay close attention to the interest rate policy by the Bank of China. Dennies also estimates that the JCI will move at support levels of 6.822 and 6.879 and resistance at 6.996 and 7.056.

Meanwhile, CEO of Yugen Bersinar Sekuritas, William Surya Wijaya, said that a reasonable consolidation at the beginning of the week is still visible in the JCI movement pattern so far, so that movement is still potentially colored by pressure and influence from global market movements.

"However, the stable condition of the domestic economy as seen from the published data is still able to support the JCI movement pattern accompanied by the persistence of several issuers in distributing dividends, of course, it can still encourage investment interest," William wrote in his research.