Strategy: The SET somewhat stabilized after the losses seen in the last 2-3 weeks. However, selling continued to pressure, while there was no fresh catalyst to provide support. Hence, there is risk that the index will continue to fall. However, we believe the loss to be brief. After which, we expect the SET to turn to increase. For this reason, we recommend that investors buy on weakness and then hold.
Technical stocks: TPIPL, MTLS, EARTH(buy back)
Market direction: Yesterday, the SET moved up in the morning. However, the gain was still within the range seen previously before the index tumbled quite sharply in the afternoon and ended the day lower due to selling to lock in profit after there was no fresh catalyst to provide support. This morning, the index continues to be capped by Wall Street's fall of over 1% and a loss in several European stock markets after weaker-than-expected corporate earnings on both sides of the Atlantic. As a result, although global crude continued to recover by over 3% following report that U.S. oil inventory decreased last week, it did not support U.S. and European stock markets. In Asia, stock markets are quite steady, moving up and down in narrow range this morning. Hence, FSS believes the SET is still in its downward movement to reduce the heat from rallies that took place since early this year. However, we are still able to rely on buying after liquidity is still quite good. As we maintain our end-2016 index target at 1500, if the market decreases, we view it as an opportunity to accumulate.
Support 1381-1379, 1375-1370
Resistance 1386-1390 , 1394-1397
Source: fnsyrus.com / settrade.com
