Selling to continue after holiday
Despite Bi raising rates to 4.75% from 4.25% there is no guarantee that rupiah will not weaken further since the cause being external which is a stronger dollar caused by the US ten year note which in our view is heading to 3.2-3.4%, this may cause rupiah to weaken further to 14.100-14.200 in our view. That could send a shock wave for the Dow which may cause selling to resume after the long holiday. From a technical standpoint selling should continue after the long holiday to next support at 5.940 and 5.890 respectively with upside capped at psychological 6.100-level.
Support: 5.940-5.890-5.810-5.740-5.690-5.620-5.520, Resistance: 6.100-6.150-6.220-6.380
Stock picks: (BUY: PTBA, BBTN, BEST, & ITMG)
- Bukit Asam (PTBA) (Profit taking target: Rp.4.150-4.250)
Entry (1) Rp.3.910, Entry (2) Rp.3.820, Cut loss point: Rp.3.740
- Bank BTN (BBTN) (Profit taking target Rp.3.250-3.350)
Entry (1) Rp.2.950, Entry (2) Rp.2.850, Cut loss point: Rp.2.770
- Bekasi Fajar (BEST) (Profit taking target Rp.285-295)
Entry (1) Rp.265, Entry (2) Rp.260, Cut loss point: Rp.255
- Indotambang Raya (ITMG) (BUY) (Profit taking target: Rp.28.200-29.200)
Entry (1) Rp.26.500, Entry (2) Rp.25.900, cut loss point: Rp.25.200
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Yuganur Wijanarko Senior Research
