This week, JCI is predicted to move in the range of 5,923-6,002

By : Abraham Sihombing And Aldo Bella Putra | Monday, December 04 2017 - 17:00 IWST

Pengunjung mengamati papan elektronik yang memperlihatkan pergerakan IHSG di gedung BEI (Foto Rizki Meirino)
Pengunjung mengamati papan elektronik yang memperlihatkan pergerakan IHSG di gedung BEI (Foto Rizki Meirino) - Jakarta - Composite Stock Price Index (IHSG) Indonesia Stock Exchange (BEI) is expected to move in the range of 5,923-6002 along the trade this week. The index seems to be forming a support point between the levels of 5.923-5.943 and its resistance point in the range of 5,987-6.002.

"IHSG this week seems to be moving on a wide range this week. That is because the JCI is likely to decline along with the emergence of selling action and the possibility of market participants to rebal portfolio for short covering later this year," said Reza Priyambada, an analyst of PT Binaarta Sekuritas, in Jakarta, Monday (04/12/2017).

Reza explained, JCI throughout the trade last week moved in the range 6.004-6.095. Its support point is in the range 6.004-6.028 and its resistance point is in the range of 6,075-6,095.

"Long black marubozu is seen in the index pattern, even confirmed close to the middle bollinger band area. Meanwhile, MACD looks flat, and RSI and Stochastic seem to be trying to ride," said Reza.

Reza argues the current market does not have a negative sentiment that has the potential to suppress IHSG to a deeper position. However, the high volume of sales dominating stock trading volume is currently due to a sell-off made by the seven largest foreign securities that rebound portfolio for short covering year-end.

Reza said, the prediction of JCI decline this week is based on the selling that occurred at the end of November 2017 that threw JCI so it cannot survive in the green zone. Last week, the JCI declined 1.89% or below its performance in the previous week which rose 0.25%.

Last week, total net sales of foreign investors stood at Rp8.44 trillion, compared to last week's net buying of Rp2.17 trillion. Foreign investors 'selling action increased net sales until the end of last week, foreign investors' net sales transactions stood at Rp35.29 trillion above the previous Rp26.85 trillion.

The need for funds to finance the construction of various infrastructure projects in the National Medium Term Development Plan (RPJMN) 2015-2019, which amounted to Rp4,796.2 trillion, became one of the sentiments affecting the market, particularly related to financing.

Positive sentiment can arise over the optimism of President Joko Widodo that there are several sectors that currently have great opportunities for entrepreneurs, among others, tourism, and business opportunities in the digital sector as well as the continued strength of the rupiah which gives enough encouragement. (Abraham Sihombing)

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