Strategy: The SET began to be more volatile and decrease, while global crude continued to weaken prior to an OPEC meeting tomorrow (June 2). Moreover, investors were concerned over a Fed rate hike at FOMC meeting mid this month (June 14-15), while China's service PMI in May decreased this morning. As a result, FSS recommends that investors wait to buy on weakness and hold the already-have position.
Technical stocks: HPT, ERW, THAI(short)
Market direction: Yesterday, the SET continued to increase. However, the gain was smaller and there were times that the index moved into negative territory. Although the loss was modest, it implies selling that continued to pressure. This morning, international investment sentiment was not bright after most U.S. and European stock markets ended lower because investors viewed that U.S. strong economic data might push the Fed to raise interest rate shortly. According to the latest data, consumer spending hit a high in over six years. Furthermore, eurostat also revealed data which pointed that the euro zone was facing deflation, while global crude continued to weaken due to concern over supply glut. As a result, Asian equity markets opened lower this morning. In this regard, FSS expects the SET to fall again as investors continue to keep an eye on U.S. weekly non-farm payrolls that is due out late this week and wait for OPEC and ECB meeting results tomorrow (June 2). Finally, we recommend that investors wait to buy on weakness.
Support 1420-1418, 1415-1412
Resistance 1426-1428 , 1430-1432
Source: fnsyrus.com / settrade.com
