Strengthening Three Consecutive Days, JCI Wednesday Is Projected To Be Corrected

Illustration. (Photo: Doc. Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is predicted to continue to strengthen in today's trading, Wednesday, May 24, after being in the green zone for three consecutive days. At the close of trading Tuesday, May 23, the JCI strengthened 0.10 percent or 7.037 points to the level of 6,736.684.

Phintraco Sekuritas in its research looked at the JCI forming an inverted dragonfly doji after the MA20 test at the level of 6,775 on Tuesday. According to him, investors need to be aware of the potential for a reasonable correction of the JCI to the range of 6,700-6,720 on Wednesday.

During the limited correction at that level, the JCI maintains a minor bullish trend (mid-term) opportunity. Furthermore, one of the factors that triggered the long upper shadow on the JCI was the manufacturing index (flash) in Germany, the UK and the European region which was below expectations in May 2023.

This condition suppresses energy stocks in the Indonesian Capital Market. As a result, IDX Energy became the sector that experienced the most significant decline of 0.82 percent on Tuesday.

In addition, the market is also still waiting for an agreement related to debt ceiling between the executive and legislature in the US. The market expects further meetings, given that Tuesday's meeting has yet to reach an agreement.

Based on these sentiments, Valdy predicts the JCI on Wednesday will move in the support area at the level of 6,700 and resistance at the level of 6,810.

For this reason, the shares chosen by Phintraco Sekurita today include INDF, ANTM, MAPI, UNVR, ASSA, SMRA, BSDE, AALI and SSMS.