Strategy: The SET rebounded quite well in the past one week or so. However, we view that the gain is attributed mainly to speculation that the Fed will not raise interest rate at a meeting on June 14-15, a factor that remains highly uncertain. Meanwhile, the Baht continues to move downward. There is risk that global crude will fall. As a result, FSS recommends that investors wait to buy on weakness and hold the already-have position.
Technical stocks: SCN, THCOM, PLAT(short)
Market direction: Although the SET continued to jump open yesterday, there was selling that pressured the index to swing wildly within narrow range intraday because there was no fresh catalyst to provide support. Meanwhile, global crude began to be volatile after it had considerably increased lately as investors continued to wait for progress from an OPEC meeting on June 2. Given that, FSS believes there is still risk that the SET will fall. This morning, there is no leading indicator from the Dow as Wall Street was closed last night to observe Memorial Day. However, European equity markets ended up, supported by bright economic data from France and Germany. However, there is still risk from a Brexist from the EU in late June to provide pressure. With that, European stock markets' upside is quite limited. This morning, although Asian equity markets continued to increase, the gain was modest took place amid volatility probably because some investors continued to wait for U.S. employment data late this week and results from a ECB meeting on June 2. For this reason, we retain our call for investors to wait and buy on weakness.
Support 1422-1418, 1415-1412
Resistance 1426-1427 , 1430-1432
Source: fnsyrus.com / settrade.com
