A week in the green zone, IHSG is prone to profit taking on Monday (12/10)

ILLUSTRATION. In total, the JCI rose 2.58% to 5,053.66 in the past week.

Reporter: Nur Qolbi | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. Composite Stock Price Index (IHSG) closed in the green zone during last week’s trading. In total, IHSG rose 2.58% to the position of 5,053.66 from 4,926.73 at the end of the previous week.

But for trading on Monday (12/10), Phintraco Sekuritas analyst Valdy Kurniawan predicts that the JCI has the potential to be corrected because it is prone to profit taking. He estimates, JCI will move with support at 4,975 and resistance of 5,080.

“Technically, IHSG forms three white candles followed by a signal overbought on the Stochastic RSI indicator on Monday (12/10), “Valdy said when contacted by Kontan.co.id, Friday (9/10).

The movement of the JCI will also be influenced by economic data, especially the results of a survey by Bank Indonesia (BI) on retail sales. In August 2020, retail sales were still correcting 9.2% on a regular basis year on year (yoy) although better than July 2020 which fell 12.3% yoy. Another sentiment came from the BI Board of Governors (RDG) Meeting whose results are scheduled for release on Tuesday (13/10).

Also Read: BI is expected to hold interest rates, this is a prediction of the JCI movement

Taking these sentiments into account, Valdy advised investors to pay attention to opportunities trading buy five stocks on tomorrow’s trade. The five shares are PT Kalbe Farma Tbk (KLBF), PT United Tractors Tbk (Untrim), PT Sarana Menara Nusantara Tbk (TOWR), PT Vale Indonesia Tbk (INCO), and PT Unilever Indonesia Tbk (UNVR).

“Be careful in responding to opportunities for accumulated buying in stocks that have strengthened significantly over the past week,” Valdy said.

Meanwhile, Sucor Sekuritas analyst Hendriko Gani predicts, IHSG on Monday (12/10) there is a chance to move up to the level resistance 5,100. “However, it is necessary to pay attention to the potential occurrence profit taking on the JCI by level support closest at 5,011, “said Hendriko.

According to him, the sentiment that has the potential to affect the JCI rate domestically is the trade balance data which will be released on Thursday (15/10). Other sentiments also come from the application of the Omnibus Law on Job Creation and the development of the United States election.

Also Read: JCI is up 2.58% a week, market capitalization reaches Rp 5,877.47 trillion