Payrolls Beat Forecast
JCI stumbled upon resistance at 4,710 and pushed back to end the Friday session at 4,685.
US nonfarm payrolls managed to beat the consensus as 175k jobs were added to the economy in February. In January, payrolls recorded an additional 129k of new jobs. Unemployment rate however, ticked up to 6.7% from 6.6% as more people came into the workforce.
While payrolls managed to keep the Dow out of the red, the concerns over Ukraine overshadowed the mood and thus limited the upside potential.
China’s Exports Fell
Exports fell 18.1% year-on-year in China as February data showed. The figure was way off the consensus which forecast a 7.5% increase. As imports rose 10.1%, beating the consensus of a 7.6% gains, the trade balance stood at a deficit of $23billion, a two-year high.
Inflation decelerated in February to 2% from 2.5% seen in January. The producer prices fell 2%, the most since July 2013.
Technically Speaking...
JCI ended the week with solid gains as it broke through its resistance at 4,665 and went all the way to as high as 4,708. Despite it got knocked off high on Friday, the index is still eyeing at the next big thing at 4,791.
Recent peak-turned-support at 4,665 will be the nearest key support line for JCI, whereas another support will be at 4,510 as this was also the prior resistance-turned-support.
Next resistance is seen at around 4,710 and subsequently 4,791.
MACD has returned to above the zero line now, while RSI stays close the overbought area. Meanwhile, volume ticked down a bit. As sharp rally risks pullbacks, the upside potential remains intact.
INDF reached its target price at 7,400. Thus, the recommendation is now closed with gains of 12.12%.
Week Ahead
Upbeat payrolls will compete with China’s falling export as well as the Ukrainian factor. The coming week may start on a weaker footing on China’s data but the downside is seen limited. Upside potential remains favored as the index eyes on 4,791.
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