JCI Predicted Weekend Still Under Pressure

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is projected to continue its weakening in today's trading, Friday, August 26, after yesterday's decline of 0.28 percent to 7,174.21.

Yesterday, foreign investors also recorded a sell-off of Rp656.12 billion in all markets. Indo Premier Sekuritas analyst Mino said that the decline in the JCI yesterday was caused by the cautious attitude of investors waiting for the certainty of the fate of subsidized fuel prices, which made the index finally closed lower.

In fact, at the beginning of trading, the JCI had moved in the green zone in line with positive sentiment from the strengthening of the US stock market.

Meanwhile, Artha Sekuritas analyst Dennies Christopher Jordan also predicts that the JCI will continue its weakening on Friday, August 26. Support 1 is expected to be at 7,143, support 2 at 7,112, resistance 1 at 7,207, and resistance 2 at 7,240.

Technically, the candlestick formed a doji with Stochastic forming a deadcross in the overbought area indicating a potential weakness in the short term.

"On the other hand, news of the revocation of the fuel subsidy has raised investor concerns because it will have an impact on weakening economic growth and higher inflation," said Dennies.

For Friday 26th August. Dennies advised investors to pay close attention to KRAS, MEDC, and TOWR stocks. Meanwhile, Mino recommends buying BBCA and LSIP, as well as buying on weakness ADHI and ERAA.