Strategy:
The SET saw buying again after its fall. Given that, we expect the index to turn to increase. However, upside seems to be limited. For this reason, we recommend that investors focus on trading at this time. Specifically, we suggest that investors buy on weakness and sell into strength. For long-term investment, it is more advisable to wait when the market decreases.
Technical stocks: DCON, MONO, GL(buy back)
Market direction:
Yesterday, the SET opened slightly higher and then saw selling that pressured the index to fall. However, the SET was able to stabilize quite well thanks to buyback momentum. This morning, investment sentiment in international equity markets is quite bright because most Asian stock markets opened higher by about 1%, supported by the FOMC's decision last night to keep policy rate unchanged. Besides the said move which is in line, the U.S. central bank also revised down its rate hike forecast to just two times at 0.25% each this year. After which, the market is more relaxed because it no longer needs to worry that the Fed will hike the benchmark rate at the next meeting. What's more, global crude recovered by nearly 6% after the EIA revealed a smaller-than-expected rise in U.S. oil stockpiles, while U.S. economic data turned to be strong again. Both of which support investors to feel more confident about risk assets. With that, FSS expects the SET to turn to increase. However, we also view that upside is quite limited because there is no fresh catalyst to support the SET after the index has shaprly increased lately. For this reason, investors must be cautious over selling that will pressure the SET to turn to decrease.
Support 1372-1366 , 1360-1354
Resistance 1380-1383 , 1386-1390
Source: fnsyrus.com / settrade.com
