The Dow Jones and others closed last week with a significant gain of between 1.7%- 2.3%, buoyed by the rally in technology stocks led by Apple as well as the release of Nonfarm Payrolls (Apr.) employment data last Friday which came in at 253k, much higher than the forecast of 180k and the previous period’s 165k; thereby eliminating concerns of a global recession threat. The US Unemployment Rate (Apr.) also unexpectedly fell to 3.4% from 3.5% previously. US weekly wage increases were detected to rise 4.4% YoY and 0.5%, both percentages were reported higher than expectations. The global economy also seems to be getting more robust, as seen in the UK Construction PMI (Apr.) data, which is increasingly steady in the expansion area of 51.1; not to forget the data from the domestic, the excellent performance of Indonesia’s economic growth in the first 3 months of this year was able to book Gross Domestic Product growth at 5.03% (proved to be healthier than forecast & previous period).
NHKSI RESEARCH expects the regional market’s positive sentiment to affect the Indonesian market; therefore, it is hoped that JCI can perch back above the safe level above the three Moving Averages (10,20,50) above 6850; so that this short-term uptrend remains intact. We suggest an Average Up, along with a Resistance breakout that remains gradual.
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