Strategy: The SET has rebounded considerably. As a result, FSS expects upside to be limited at this time. Moreover, it is more likely that the market will fall. In particular, investors should pay attention to selling from concern over a Fed rate hike and a Brexit from the EU; both of which will pressure the SET to retreat. For this reason, we recommend that investors wait to buy on weakness and hold the position that are already placed, waiting for a new round of rallies that we expect to take place shortly.
Technical stocks: SMPC, THCOM, ROBINS(buy back)
Market direction: The SET has rebounded considerably. As a result, FSS expects upside to be limited as the market's lack of fresh catalyst to provide support will trigger selling that pressures the index to fall. Yesterday, although the SET moved in positive territory, it was quite volatile intraday. This implies selling that continued to put a cap on the market. This morning, although investment sentiment in Asia remains bright, they only moved narrowly in positive territory because Wall Street began to see selling to lock in profit after it surged in the last two consecutive days. Moreover, global crude also weakened, while Fed officials continued to flash signal about a Fed rate hike. Given that, FSS expects some investors to remain on the sidelines, waiting for news about a rate hike at a Fed meeting due on June 14-15 and clarity over a Brexit from the EU on June 23. In addition, the SET's upside should be limited at this time, while the market is likely to be choppy and turn to fall. For this reason, we recommend that investors wait to buy on weakness.
Support 1400-1398, 1395-1390
Resistance 1403-1405 , 1407-1411
Source: fnsyrus.com / settrade.com
