Yesterday's market: Although the SET was somewhat volatile, it turned to move quite strongly in positive territory nearly all day after the index tumbled late last week to factor in the bad news about a Brexit.
Today's outlook: The concern over negative impact from a Brexit continues to put a cap on global equity markets. This morning, most Asian stock markets continued to open lower. Although the loss was not as large as in the U.S. and Europe, it should put pressure on Thai stock markets. Moreover, the SET rebounded quite strongly to move in positive territory yesterday. Hence, there is prospect that there will be selling to lock in profit and reduce risk, which will pressure the index to be volatile and retreat. In the meantime, global crude weakened, putting downward pressure on Thai energy shares. However, FSS continues to believe that when the SET falls, there will be buying to support the market and help it turn to move up once again. Given that, we continue to expect the index to turn to climb to our target of 1500 going forward.
Strategy: Following our call for investors to buy on weakness, FSS now recommends that investors hold their bet, waiting for a new round of rallies. Nonetheless, investors still need to be cautious about volatility. For this reason, if one wants to increase their positions, it is suggested that they are placed on weakness.
Support 1422-1418 , 1415-1410
Resistance 1426-1430 , 1434-1438
Source: fnsyrus.com / settrade.com
