MARKET OVERVIEW
Today’s Range : 1761-1817
Full of uncertainty in the first session but very strong in the second one. That’s what happened at JCI yesterday. In the first session, JCI jumped up and down between negative & positive territory in a 1761-1783 range. But once in the second session strong movement start coming, lead by ELSA, TLKM, PGAS, ANTM and especially BUMI. In the first session BUMI is all but positive. But in the middle of second session BUMI rose from 1620 to 1770 (+5.4%). JCI itself posted a 1.48% gain (+26.26 points), closed at 1798. In the regional market, STI jumped 5% after a better-than-expected results from UOB & OCBC earnings.
Indication that the banks stress results would be announced tomorrow in which banks may not require much additional capital has boosted investors confidence in US market last night. DJIA was up 1.2% to 8512 while Nasdaq closed at 1759 (+0.3%). American Express, JPMorgan Chase & Bank of New York Mellon Corp were reported successfully passed the the test. Another positive economic data was the ADP National Employment Report showed that April private sector employment fell by 491,000, much better than the 708,000 job lost in March.
For today’s trading we forecast JCI will move in a 1761-1817 range. Results of stress banks in United States will be watched by investors, though we think whatever the result our market still show some upward movement. Our top five stocks pick would be ELSA, BUMI, PGAS, TLKM & ANTM. Watch for metals stocks as nickel up 5.8% & tin up 6.7% last night.
TODAY'S TOP PICKS
BUMI – Hold/Speculative Buy
Target Price :2175
Resistance : 2175
Cut Loss :1420
Support : 1570
What can you say about BUMI then. Another comeback from lowest 1620 to highest 1770 yesterday, BUMI finally managed to closed at its 1770 highest, surge +5.4%. Strong indicator that the markets is trying to fly BUMI. We still manage our trading target price 2175 & up grade our support to 1570. We recommend speculative buy or hold for BUMI.
TLKM – Buy
Target Price :8000
Resistance : 8000
Cut Loss :6250
Support : 7100
TLKM yesterday has became one of the supporter for JCI closing in positive territory. TLKM itself gain 150 point to 7850. When we look at TLKM chart we’ll see a pattern that everytime its price touch its MA20 or MA50 then it would rebound. In the last two days TLKM price touched its MA20, we’re hoping it would repeat its pattern and move toward its strong resistance at 8000. If not, just make sure to cut loss at 6250 level.
PGAS – Buy
Target Price : 2950
Resistance : 2950
Cut Loss : 2250
Support : 2500
PGAS has managed to break up our 2600 resistance yesterday with strong volume. Therefore we are very optimistic about this stock moving toward our next resistance and target price 2950. We highly recommend a buy on PGAS.
ELSA – Speculative Buy
Target Price : 410
Resistance : 410
Cut Loss : 280
Support : 300
Back to ELSA. Yesterday posted a 9.5% gain with strong volume. News that Pertamina is seriously considering to buy 37.15% ELSA shares became the catalist. Up to now, Pertamina has already had 41% stake at ELSA. In the coming days we’re still be hearing news about this corporate action. Our target price would be 410.
ANTM – Speculative Buy
Target Price :1920
Resistance : 1920
Cut Loss : 1320
Support : 1470
ANTM yesterday rose 7.8% to 1650, cross above its 1620 resistance. Hence we’re up grading our resistance & target price to 1920. Yet we’re still maintain our support at 1470 to be a bit conservative. News that nickel price at after-hours trading in London rose to $12,230 (+2.8%) became the catalist for ANTM rally. For the up coming days, we’re about to see ANTM moves in accordance to nickel prices. Speculative buy on ANTM.
DISCLAIMER ON. The followings are not a recommendation to buy, hold, or sell stocks. Those are for my personal trading purpose only.
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