Yesterday's market: The SET continued to strongly rebound thanks to optimism that the upcoming referendum on Brexit will yield a result that the U.K. remains in the EU. However, this is yet to be seen on June 23. As a result, we expect the index to continue to swing wildly within narrow range for now.
Today's outlook: As investors cannot be too sure that a referendum on Brexit will produce outcomes as the poll indicated that the U.K. would remain in the EU, Asian equity markets continued to be volatile, even though both U.S. and European stock markets ended up overnight. Specifically, they opened mixed this morning, while waiting for clarity over a Brexit reference on June 23. However, global crude recovered to move close to US$50 a barrel once again, which should help support buying in the energy sector. Given that, FSS expects the SET to be volatile and move sideways prior to a new round of rallies going forward.
Strategy: FSS believes the SET will fall only temporarily. Moreover, the loss will be brief and limited before there is buying that supports the market to climb back to our index target of 1500. For this reason, if the index decreases, we recommend that investors buy. After which, we suggest that investors hold, waiting for a new round of rallies.
Support 1419-1417 , 1412-1410
Resistance 1425-1430 , 1435-1438
Source: fnsyrus.com / settrade.com
