Jakarta Composite Index (JCI) is expected to see some corrections today after scoring gains in the nine consecutive days. Yet, JCI is potentially to rally.
Which shares are worth a close watch? Here are the recommendations as reported by Bisnis.com today:
JCI successfully broke the resistant level at 3,603.40 (0.33%). Mining, plantation and banking shares contributed significantly to the stronger index. Although the trend is positive, the index is prone to profit taking, a condition the investors must consider while investing. The index is potentially to move 3,560-3,628. Please monitor the mining and consumer goods stocks.
As JCI has rallied in the last nine consecutive days, today we will see a correction, as indicated from weakening trend in stochastic. The support and resistant levels are set at 3,647 and 3,569. Please monitor stocks like PTPP, JMSR, and BBNI.
JCI rebounded on yesterday as it was closed 11 points higher with foreign net buy amounting 240 billion. The chart shows JCI in overbought area, leaving a potential of profit taking to take place. The index, however, is still potentially to strengthen today with a movement around 3,580–3,630 and shares to watch are MEDC, INDF, ASRI and BUMI.
After being opened at positive area and weakening to certain points due to profit taking, the index succeeded to break new high. Yet the improved market sentiment as supported with positive regional market, JCI managed to rebound by 0.3%. With limited gain in JCI, there is potential for correction following a dead cross pattern in Stochastic. Today, the index is estimated around 3,580-3,622 with choice of shares like ADRO and SGRO.
Commodity stocks had held up the index in yesterday\'s trading as profit taking took place, particularly hitting consumer goods and construction stocks. Although it finally topped 3,600, profit taking still may influence the index trading. Banking and commodity stocks are best choices for today\'s trading while the index may move between the support-resistant levels at 3,571-3,620.
Disclosure: No position at the stock mentioned above.