Strong Performance Sends Medco Shares Soaring 64%

Improved financial performance, driven by the rise in global oil prices to US$70/barrel, has pushed the share price of PT Medco Energy International Tbk to Rp 1,400/share. Based on the published financial report for Q3 2017, this oil and gas sector issuer recorded a profit of US$164.3 million, or approximately Rp 1.95 trillion. This is a significant improvement compared to Q3 of the previous year, which recorded a loss of US$149.6 million, equivalent to Rp 1.99 trillion.

The share price of the oil company, traded under the code MEDC, closed up 6.97% at Rp 1,460/share on Thursday (22/2). Compared to its position at the end of last year, the shares of this Arifin Panigoro company have risen by more than 64%. In fact, over the past year, Medco shares have surged by 158.87%.

From a technical indicator perspective, the Relative Strength Index (RSI) suggests that Medco shares are quite expensive in the short term, as the RSI is at 75.45 on a scale of 0-100. This figure is above the 70 level, indicating overbought conditions. However, MEDC shares still have the potential to rise to Rp 1,507/share, and if they can maintain this level, they could rise further to Rp 1,532. If they fail to do so, Medco shares could potentially fall to Rp 1,462-1,443/share.