JCI is predicted to rise again on Monday (26/7), following the sentiment:

Reporter: Nur Qolbi | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. The Composite Stock Price Index (JCI) is predicted to strengthen again on Monday (26/7). On the last trading day last week, the JCI fell 0.58% to 6,101.69 after rising 1.99% in the previous two trading days.

Phintraco Sekuritas analyst Valdy Kurniawan said the JCI has the potential to re-test the resistance level of 6,130, especially if it can stay above the 6,100 level. Meanwhile, JCI support is estimated to be at the level of 6,000.

Technically, the potential strengthening is supported by the movement of the Stochastic RSI indicator which is still in the uptrend pattern. While fundamentally, one of the positive catalysts comes from the manufacturing indexes of the Euro Area, Germany and the United States which are expected to stay above the 60 level.

“This indicates an expansion of the manufacturing sector so that the demand for commodity products is estimated to be large,” said Valdy when contacted by Kontan.co.id, Sunday (25/7). Therefore, commodity stocks, such as ANTM, TINS, INCO, MDKA, AALI, SIMP, and LSIP are interesting to watch on Monday (26/7).

Also Read: JCI rose 0.91% during the week, these stocks are widely collected by foreigners

Other sentiment is related to market participants’ anticipation of the US central bank’s benchmark interest rate decision which will be announced on July 29, 2021. According to Valdy, the Fed is expected to maintain its benchmark interest rate at 0.25%, but the Fed’s view of the upward trend in inflation and The US economic outlook is another thing that market participants are waiting for.

In a similar vein, Artha Sekuritas analyst Dennies Christopher Jordan also predicts that the JCI will continue to strengthen tomorrow. Technically, the stochastic indicator formed a dead cross which indicates the JCI has the potential to weaken in the short term.

Dennies predicts that JCI support 1 will be at 6,072 and support 2 will be at 6,043. Meanwhile resistance 1 is at 6,148 and resistance 2 is at 6,195.

“However, the movement will be overshadowed by Covid-19 cases and the number of deaths that continue to rise, so there is the potential for PPKM to be extended again,” he said. In addition, the movement at the beginning of the week will be minimal economic data sentiment.