Strategy: Although the SET rebounded intraday lately, FSS expect upside to be limited. Moreover, the index is more likely to continue to retreat because there is no fresh catalyst to provide support. For this reason, we recommend that investors wait to slowly accumulate on weakness. Nonetheless, we believe the SET is only in a brief retreat before it turns to rally going forward. Hence, after bets are placed, we suggest that investors hold them, waiting for a new round of rallies.
Technical stocks: VNG, UPA, TTA(buy back)
Market direction: The SET continued to weaken. Although the loss was modest and the index managed to steady at times, sell pressure persisted. This morning, investment sentiment abroad is not bright after both U.S. and European stock markets continued to fall overnight due to global crude which tumbled by over 2% following analysts' negative view over the crude oil outlook. Moreover, crude oil futures continued to be pressured by a report that Cushing oil inventory increased. In the U.S., Wall Street was also hit by larger-than-expected fall in U.S. new home sales in March. However, the market saw buyback momentum in the second half of the day. As a result, Asian equity markets managed to move down only modestly and there were some gains too. Given that, FSS expects the SET to continue to swing back and forth in narrow range between positive and negative territories, waiting for results from FOMC meeting that are scheduled to take place on April 26-27. However, if there is no fresh catalyst to provide support, we expect the SET to continue to decrease after its strong rally earlier. For this reason, we maintain our call for investors to slowly accumulate on weakness.
Support 1406-1402, 1398-1395
Resistance 1410-1415 , 1420-1426
Resistance 1410-1415 , 1420-1426
Source: fnsyrus.com / settrade.com
