Supported By Several Positive Sentiments, Wednesday's JCI Is Expected To Strengthen

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (IHSG) is expected to be bullish on Wednesday, February 8 trading, after strengthening 0.89 percent yesterday at the level of 6,935.3.

Phintraco Sekuritas in their research said that the JCI has a bullish reversal opportunity if it confirms the resistance breakout at 6,920. Technically, Alrich sees the stochastic RSI forming a golden cross at the 50 percent pivot and MACD has the potential to form a golden cross with the prediction of the next closest resistance at the level of 6,990 to 7,000.

"On Wednesday, the JCI is expected to move at support at the level of 6,840 and resistance at the level of 7,000 which is influenced by domestic sentiment from economic conditions and the energy sector," explained research by Phintraco Sekuritas.

The main driver for the JCI is the Indonesian economy which grows 5.31 percent throughout 2022. The realization of Indonesia's economic growth is higher than the estimate of only 5.29 percent.

"The position of foreign exchange reserves as of January 2023 amounting to US$139.4 billion, sufficient to finance 6.1 months of imports, is far above the international adequacy standard of 3 months of imports," explained research by Phintraco Sekuritas.

Meanwhile, from a sectoral perspective, the energy sector experienced the most significant growth in today's trading Tuesday after rising 2.88 percent. This was triggered by bargain hunting in energy stocks amid anticipation of the release of the 2022 annual financial reports.

Technically, energy stocks still have the potential to become JCI movers today, including PTBA, MEDC, INDY and UNTR.