Strategy: We expect the SET to continue to be volatile and retreat at least for a while. However, we expect most investors to buy back at 1360-1350, the previous bottom, which will likely help drive the index to turn to move upward. For this reason, we recommend that investors buy on weakness and then hold, waiting for a new round of rallies.
Technical stocks: LIT, MILL, BDMS(short)
Market direction: The SET continued to fall. The Yen quickly appreciated after the BOJ did not launch more stimulus at its meeting yesterday, which pressured most equity markets in Asia, Thailand included, to decrease. Moreover, that also sent a repercussion to Wall Street, causing it to end down by over 200 points after there was pressure from initial U.S. 1Q16 GDP which expanded less than expected and was the lowest since 1Q14. With that, most Asian stock markets continued to open lower this morning, while the SET is also likely to feel the pressure and continue to fall. Nonetheless, global crude continued to recover, supported by U.S. dollar depreciation. This is likely to trigger buyback momentum in energy shares. For this reason, FSS expects the SET to continue to swing back and forth. However, the domestic markets are about to have two long holidays in one week. Moreover, they will only trade for two days next week. As a result, it is more likely for the markets to see selling to reduce risk. In this regard, we recommend that investors slowly accumulate on weakness.
Support 1396-1393, 1390-1384
Resistance 1404-1406 , 1410-1412
Source: fnsyrus.com / settrade.com
