Strategy:
The SET swung wildly within narrow range last week and continued to see selling pressure early this week that caused the index to move downward. Given that, FSS expects the SET to remain on its downward path. Although there might be rebounds, we expect upside to be limited. Hence, we recommend that investors wait to buy on weakness.
Technical stocks: COM7, ASEFA, CPN(short)
Market direction:
Yesterday, the SET decreased after there began to be selling since the afternoon of the day before yesterday. To elaborate, the index is pressured by another decline in global crude after Iran plans to raise oil output to its pre-sanction level. Given that, the prospect that oil producing countries will reach a deal to tackle the supply glut problem is slimmer. What's more, FSS expects part of the selling to come from investors' risk aversion after the SET has sharply increased lately, reflecting nearly all of the positive news in the market. Last night, although the Dow continued to end higher, the gain was modest. In addition, trading was choppy, pressured by weak U.S. economic data and oil price. However, most Asian stock markets are able to open higher this morning thanks probably to buying to bet on FOMC meeting results tonight. Note investors expect the outcomes to be positive as U.S. economy remains directionless. For this reason, FSS expects the SET to turn to move up. However, there is no new catalyst to provide additional support. Hence, upside should remain limited and the index is likely to fall in the end.
Support 1380-1376 , 1372-1366
Resistance 1385-1388 , 1390-1394
Source: fnsyrus.com / settrade.com
