Strategy: The SET is still likely to rebound to move in positive territory, in line with bright investment sentiment abroad. However, there is no fresh catalyst to provide support and the index has sharply rallied lately. Hence, FSS recommends that investors watch out for selling when the index increases, which will pressure the Thai index to fall. Moreover, we suggest that investors do not buy into strength and wait to accumulate on weakness. After which, investors should hold, waiting for the next round of rallies.
Technical stocks: PTG, IRCP, TTA(short)
Market direction: Yesterday, the SET began to be volatile and retreat after the index has quickly increased lately by nearly 70 points in the last 4-5 trading days. Meanwhile, domestic banks' earnings that were announced this week were weaker than expected. However, the recovery in global crude price managed to support energy shares to increase. Specifically, it was supported by an EIA report that U.S. oil stockpiles increased less than expected last week. This has helped both U.S. and European stock markets to end higher, which in turn provided support for Asian equity markets to open up this morning. As a result, it is also possible that the equity markets in Thailand will also turn to rise. However, Asian equity markets' gain was quite limited. Hence, FSS also expects the SET's upside to be narrow. Moreover, there is no fresh catalyst to provide support lately. For this reason, investors must watch out for selling to lock in profit when the index increases, which will put a cap on the SET, making it possible for the index to turn to ease. Finally, we recommend that investors wait to buy on weakness.
Support 1410-1407, 1403-1398
Resistance 1417-1420 , 1426-1429
Source: fnsyrus.com / settrade.com
