With the Jakarta Composite Index (JCI) closed 2.1% or 78 points weaker to 3,665.85 in the closing session last weekend, investors may expect for another correction today. This is stock recommendations today as reported by Bisnis.com.
In its review said that the weakening JCI was hit by the concern on the global phenomenon, including Irish debt and speculation over Chinese further monetary tightening.
The concern was somehow indicated by foreign investors' net sell of IDR350 billion during the trading.
The chart shows stochastic made death cross on overbought area while RSI headed down to the line of 50%. JCI is estimated to move around 3,635–3,700.
The securities company recommends shopping on blue-chip shares while reversal sign occurs.
Negative sentiments for the market today is an increase of China's inflation rate, stipulating market jittery last week. Investors were afraid that the benchmark interest rate would be revised up in a bid to reduce negative impacts from higher inflation. Support and resistance level is around 3,621-3,737. Give attention on mining-based stocks, bank, infrastructure, and property.
Disclosure: No position at the stock mentioned above.
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