Strategy: The SET rebounded after it quickly decreased earlier. However, we continue to believe that upside is limited and there is risk that the index will turn to continue to decline. For this reason, we recommend that investors gradually buy on weakness. After which, investors are suggested to hold because we believe that the SET is about to turn upward.
Technical stocks: STPI, BJCHI, TU(short)
Market direction: Yesterday's afternoon, the SET began to see more support from buyback momentum after the index began to stabilize better in the morning from its quick retreats in the last 3-4 days. On the international front, investment sentiment is quite bright this morning after U.S. and European equity markets closed mostly up thanks to a rise in European financials stocks and a surge in U.S. new home sales in April to a new high in over eight years. Moreover, global crude recovered thanks to the expectation that U.S. oil inventory decreased last week, a report that the EIA will reveal today's evening. As a result, most Asian stock markets opened sharply higher with an average gain of over 1%, a situation which we expect to help trigger continuous buying in Thai equity markets. Given that, the SET stands a chance to continue to climb. However, the concern over a Fed rate hike at a meeting scheduled in mid-June continues to pressure. Hence, we expect the index's upside to be quite limited. In addition, investors must watch out for downward volatility. In this regard, we recommend that investors hold their already-have positions. However, if anyone plans to place new bets, we suggest that they are accumulated on weakness.
Support 1380-1375, 1370-1365
Resistance 1386-1388 , 1392-1398
Source: fnsyrus.com / settrade.com
