Strategy:
Strategy: The SET continued to see selling that pressured it when it increased after the index has climbed quite sharply lately. Given that, FSS expects the SET to retreat and recommend that investors wait to buy on weakness.
Technical stocks:
SCN, APCO, KCE(short)
Market direction:
Yesterday, although the SET continued to move mainly in positive territory, there began to be more profit taking that pressured the index in the afternoon. Such selling has caused it to give up its early gain of 14 points in the beginning and ended the day with just a modest increase. Last night, global crude fell by about 3% after there was news that Iran planned to raise its oil production to the preembargo level. Moreover, the country had no interest to participate in a meeting with oil producing countries to consider way to tackle the oversupply problem. Given that, although both U.S. and European stock markets continued to end higher thanks to the news about the ECB's additional stimulus last week and support from a rise in U.S. consumer shares, they were highly volatile and saw smaller gain intraday. This morning, most Asian equity markets turned to open lower. With that, FSS maintain our call for the SET to open lower because the index has sharply rallied to factor in positive news, while there is yet to be clarity over many catalysts. As a result, there is prospect that some investors will sell to lock in profit, while some will choose to wait for results from a FOMC meeting tomorrow's night (March 16).
Support 1390-1385 , 1380-1376
Resistance 1397-1400 , 1402-1407
Source: fnsyrus.com / settrade.com
