Strategy:
The SET continued to rally. However, the index has increased quite sharply, while there is no fresh catalyst to provide additional support. Hence, FSS expects the SET to fall shortly and recommend that investors wait to buy on weakness. When the SET increases, especially closer to 1420 or higher than that, we suggest that investors sell in order to trim portfolios and hold cash.
Technical stocks: LPN, TASCO, PTG(short)
Market direction:
Yesterday's afternoon, there was buying in bank shares that supported the SET to turn to sharply increase, even though most Asian equity markets remained weak. However, FSS views that there is no new catalyst to provide support. Hence, we recommend that investors remain cautious over selling to lock in profit, which will pressure the market when it increases. This morning, investment sentiment is not bright because U.S. and some European stock markets ended lower last night after global crude turned to fall by about 4% to trade below US$40 a barrel once again. Such loss took place after U.S. oil stockpiles increased for the sixth straight week to a new record high. What's more, investors feared that the Fed might hike policy rate sooner than expected after a signal made by a Fed official. For these reasons, FSS recommends that investors watch out for profit taking to reduce risk since the market rally lately might pressure the SET to fall. In addition, we suggest that investors wait to buy on weakness. Specifically, we expect the market to fall to build up new base shortly.
Support 1407-1402 , 1397-1390
Resistance 1414-1416 , 1420-1426
Source: fnsyrus.com / settrade.com
