Strategy: The SET continued to stabilize well and rebounded quite strongly at yesterday's close. However, FSS expects upside to be limited because the market continues to lack fresh catalyst. Hence, investors should watch out for selling that pressures that SET to turn to fall in the end. In addition, we recommend that investors wait to buy on weakness and then hold for medium- to long-term investment rather than trading.
Technical stocks: SPCG, SPA, BH(buy back)
Market direction: The SET continued to stabilize yesterday's morning and saw buying in the afternoon, particularly in the last hour, that supported the index to rebound sharply. However, although the index was able to move higher than the range seen since last week, it was just a rebound. This morning, we expect the market to be pressured by international markets' fall after several European equity markets ended sharply lower last night due to Eurostat's report which revealed that eurozone manufacturing PMI in March decreased for the second straight month. Moreover, they were capped by weak corporate earnings. In the U.S., equity markets ended slightly up and were volatile nearly all day after the U.S. Labor Department disclosed a rise in weekly jobless claims that is the highest in over one year. They put pressure on most Asian stock markets this morning, making them open lower. Meanwhile, global crude which recovered earlier began to be more volatile. For these reasons, FSS expects the SET to gain limitedly. In addition, there is risk that it will turn to fall once again. As a result, we recommend that investors buy on weakness.
Support 1394-1392, 1385-1382
Resistance 1403-1405 , 1409-1412
Source: fnsyrus.com / settrade.com
