Market Recap
JCI ended higher on Friday, 09/07/18, as it was backed by the strengthening rupiah’s exchange rate for the U.S. dollar. Top Gainers: Misc. Industry (+4.42%), Consumer (+2.90%), Finance (+1.03%).

Global markets closed mixed on Friday’s trading session. Investors kept a wary eyes on the trade war between the U.S. and China. On the other side, the U.S. markets closed lower on Friday, 09/07/18, after the massive tech. stocks sale and the jitters of tightening monetary policy.

Today’s Outlook: Lagging Decline in Forex Reserve
We estimate that today JCI likely rallies with the support range of 5811-5817 and resistance range of 5904-5916. The positive sentiment comes from the release of August’s forex reserve amounting to USD117.9 billion. The figures slightly edged down by USD400 million from USD118.3 billion in July. The decrease was slightly lower than the constant decline topping USD1 billion in the prior months. The decrease indicates the fundamental recovery amid the pressure of rupiah depreciation.

However, it is estimated that today’s rally likely moves in constrained pace in light of the global negative sentiment of the trade war between the U.S. and China. President Trump stated that the U.S. is ready to impose another tariffs of USD267 billion on China’s goods. The tariffs tops USD200 billion tariff already targeted on China’s goods.

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