Junior Market set to consolidate

The Junior Market traded at a high of 4,075 points on Monday last week and then pulled back 242 points to 3,833 points before bouncing on Friday. The movement down on Thursday hit a support point as shown by the red line, from which it bounced, having moved to resistance just over 4,000 points.
With most Junior Market companies reporting fourth quarter results the market may be helmed in between the recent high and low points. While Bank of Jamaica has pushed up their Over Night rate to 4 percent effective on Monday, moderating inflation for the past three months compared to a huge 16 percent per annum increase between May and October last year, suggests that the interest rate hike might be at an end, with the next move likely to be lower than higher, but that is likely to take months.