Bull bounces off oversold to reap some upside
We look at the recent corrections and consolidations as an attempt to work off overbought excesses after reaching the all time high of 5.874 last May (22/05) which has now fell into daily oversold readings, thus we should not be surprised that a major reversal in the short term trend from sideways to upward should resume which can take us until upper resistance at 5.746-5.800.
Support: 5.650-5.560-5.495, Resistance: 5.800-5.900-6.100-6.500
Stock picks: (BUY: BNLI, INDF, LSIP, PWON)
- Bank Bali (BNLI) (Trading target: Rp.725-755)
Entry (1) Rp.665, Entry (2) Rp.655, Cut loss point: Rp.645
- Indofood (INDF) (Trading target: Rp.8.950-9.150)
Entry (1) Rp.8.450, Entry (2) Rp.8.350, Cut loss point: Rp.8.250
- London Sumatra (LSIP) (Trading target Rp.1.550-1.650)
Entry (1) Rp.1.400, Entry (2) Rp.1.375, Cut loss point: Rp.1.315
- Pakuwon (PWON) (BUY) (Trading Target: Rp.660-715)
Entry (1) Rp.600, Entry (2) Rp.585, cut loss point: Rp.575
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Yuganur Wijanarko Senior Research (yuganur.wijanarko@kgi.com) (kgi.id)
