Market Update (May 17, 2017)


(OpisBoi‘s Technocopter) JCI failed to gain from the rising crude oil price, however it finally slipped over a soggy macro backdrops as China’s Moderate Growth continues. JCI was weakened for -0.74% sag to 5,647.00 pts, and touched its uptrend support level at 5,645 – 5,650 pts.

There were 177 shares dropped, as selling tension overshadowed on most listed company in the banking sector which retreated for -1,90%. In the meantime, bargain hunting among 148 stock mostly basic-industries and mining sectors which increased respectively by 1.34% and 1.22%, were unable to push the index back to its 5,700s. With a total shares traded around 77,959,543.00 shares, foreign investors made another IDR438.30bn Net Purchased across the board.

Somehow, an Oversold Stochastics at 9.85% and MACDs nearing the historical low at -12.233 (currently at -8.67) indicates a limited selling pressures, and shall give an opportunity for the JCI to pull back from its negative territory. Hence, a Buy on Weakness call on the index, may not be too overrated.

However, should the 5,645‘s uptrend support breaches, as the Concealing Baby Formation arose from the OpisBoi‘s short-term trendicators. We might need to lower the JCI stop-loss level to 5,590 pts, and set the cut-loss level at 5,570 pts. Therefore, JCI expected to set a foot between 5,597 – 5,665 pts levels.

Some of these stocks still have a potential upside to cease the selling pressures, and hold the market steady (TradingBuy); HMSP BBCA MEDC INCO SMBR ADHI WIKA WSKT; Foreign Investors eyed on some of these stocks; BSDE KIJA INDY TBIG TOWR BJTM MCOR (OnScreen); BUMI BWPT BRMS PWON CTRA SMRA;

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