Strategy:
In the last two weeks, the SET continued to be volatile and see selling pressure, especially when the index increased. Given that, FSS expects the SET to retreat. Moreover, if the index increases, the gain will be limited. For this reason, we recommend that investors buy on weakness and sell into strength while trading. However, if investors would like to accumulate for long-term investment, we suggest that they wait to buy when the market turns to move downward.
Technical stocks: NUSA, DEMCO, KCE(buy back)
Market direction:
Yesterday, although the SET turned to move mainly in positive territory, jumping by nearly 12 points, the daily peak was seen since the first half hour. After which, the index moved mostly sideways downward until it ended the day with just two points. This implies selling to reduce risk after the SET has sharply increased lately.
The selling continued to pressure the market because there was no new catalyst to provide support. This morning, the SET still looks set to move sideways up within limited range. Although most European stock markets ended lower, Wall Street continued to close up by nearly 1% thanks to global crude which jumped by over 4%, responding to the Qatari energy minister's statement that both OPEC and non-OPEC countries would meet in Qatar on April 17. With that, investors were hopeful once again. What's more, U.S. equity markets were also supported by a lower-than-expected rise in U.S. weekly jobless claims.
As a result, most Asian stock markets opened higher this morning. However, the gain was also modest. For these reasons, FSS maintains our call for investors to be cautious about selling to lock in profit and reduce risk because the catalysts that provide support at the moment are highly uncertain.
Support 1376-1370 , 1366-1360
Resistance 1382-1386 , 1390-1393
Resistance 1382-1386 , 1390-1393
Source: fnsyrus.com / settrade.com
