Market Recap
Albeit a slight decline, JCI closed higher on Friday, backed by the consumer sector amid the slowdown in crude prices. Top Gainers: Basic Industry (+1.62%), Agriculture (+1.60%), Consumer (+1.35%).
The global markets was in mixed mood amid the sliding global crude prices. European markets were murky, beset by the lower-than-expected economy and Brexit. Fears of escalating trade war sent China’s markets to lower more than 2%. After the Thanksgiving’s holiday, the U.S. market closed lower, suppressed by the tech. sector.
Today’s Outlook: Tumble in Crude Prices
We estimate JCI to rally with the support range of 5976-5984 and the resistance range of 6052-6059. The main sentiment for global markets is the slowdown in crude prices. WTI’s benchmark prices dived 7.7% on Friday. Reaching its highest price level in the early of October, WTI’s benchmark prices has declined by 31%. The steep decline is triggered the oversupply by Saudi Arabia and fears of the low demand for crude in 2019.
For Indonesia, the sliding crude prices give a positive impact. Fears of the widening external deficits can be mitigated. On the other side, the rupiah is exposed to positive sentiments of the bond auction postponed until the end of 2018.
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