Strategy: The SET rebounded intraday within the range seen since late last week after it saw support from a recovery in global crude. This morning, investment sentiment in Asia turned brighter. However, there is still no fresh catalyst. Moreover, Asian stock markets' gain was quite limited, while the concern over corporate earnings continues to pressure. For this reason, FSS expects the SET to continue to move down and recommends that investors wait to buy on weakness.
Technical stocks: MDX, BEAUTY, TPIPL(buy back)
Market direction: The SET saw limited gain. After which, there was selling that pressured it to decrease. This morning, there is prospect that the index will increase after in-line FOMC meeting results last night. Specifically, the Fed kept its policy rate on hold and said that it was in no hurry to increase it. What's more, global crude continued to recover by nearly 3% thanks to U.S. dollar depreciation. They provided support for U.S. and European stock markets to end higher and stimulation for buying in Asian stock markets this morning. Nonetheless, FSS expects the SET's upside to be limited because most Asian equity markets did not sharply increase. Moreover, investors must watch out for pressure from selling to lock in profit after there is no fresh catalyst to provide support. As a result, there is risk that the SET will continue to fall after the chance for a rate hike at the next Fed meeting in mid-June remains open, while global crude continues to see selling that pressures its gain. Looking ahead, we view that some investors might want to wait for U.S. economic data due late this
week.
week.
Support 1410-1405, 1400-1397
Resistance 1414-1416 , 1420-1423
Source: fnsyrus.com / settrade.com
