INVESTMENT STRATEGY SELECTION USING TECHNICAL ANALYSIS TREND, SUPPORT, RESISTANCE AND PATTERN ON SMALL MEDIUM COMPANY STOCK

• Main Author: Jessie Rumbay, Osvaldo
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/44360
• Institution: Institut Teknologi Bandung

Investing activities in stock market have a purpose to cover investors money from inflation rate by getting a profit from capital gain and dividend. Placing money in the savings account or deposit accont can only decrease the value of the money of investors.In Indonesia stock market there is a big opportunity for investor to invest by seeing the annual growth rate of Indonesia Stock Index (Indonesia Composite Index) for the last ten years with average of 25% per year or 19% above the deposit rate and 24% above the savings rate. The opportunity in the stock market can be seen not only from the average annual growth rate from the Composite Index but also from the significant growth of each company like the Garuda Indonesia 172%, Bank Permata 93%, and Wijaya Karya 56% in just 6 months. The main factor that makes investor lose ther money in the stock market is because they position is on the opposite way of the market. That’s why in this thesis author try to take the opportunity in the Indonesia Stock Market by using a technical analysis to formulate an investment strategy selection by using the technical analysis factors to have a better understanding the market structure of each company stock price from the supply area of sellers by identifiying the resistance area, demand area of buyers by identifiying the support area and exit strategy to that performed on the SME-PERFINDO 25 Index. There are 3 steps in order to formulate the investment selection strategy. The first step is by identifying the overall trend of each company stock price. The second step is identifying the level of supply and demand area to act as a buy and sell area and the third step is identifying the patterns in order to get a measured target price that will act as a sell area in the future. Based on the analysis of 25 stock in the SME PERFINDO 25 Index, total 15 stock is recommended to buy. Later the optimal recommendation is total 11 stock, this optimal recommendation is from the risk and reward relationship matrix. The analysis evaluation of technical analysis later reveal that from total 11 optimal recommendation 6 is profitable and 5 is non-profitable or with win rate ratio of 54.55%