Yesterday's market: The SET continued to swing wildly within narrow range in the early hours of yesterday before there was buying to speculate on Brexit result to provide support before the market closed, helping the index to end up by nearly 1%.
Today's outlook: Last night, both U.S. and European stock markets closed strongly up overnight to bet on referendum result that the U.K. will decide to remain in the EU. However, the vote counting which started early this morning gives quite close a result between those wanting to leave and stay. Given that, most Asian stock markets opened down due to selling to lock in profit and reduce risk. In Thailand, FSS also expects the SET to see choppy trading, swinging in narrow range between positive and negative territories, while waiting for official Brexit referendum result this evening. For this reason, we recommend that investors keep close eye on Brexit result today. However, we continue to view that if the market decreases, there will be buyback momentum to provide support, which will help the index steady to build up base for a new round of rallies. Specifically, we expect the SET to climb to our index target of 1500 going forward.
Strategy: FSS continues to recommend that investors buy on weakness and the hold, waiting for a new round of rallies to lock in profit.
Support 1434-1430 , 1428-1426
Resistance 1442-1446 , 1450-1460
Source: fnsyrus.com / settrade.com
