Yesterday's market: The SET swung wildly in narrow range nearly all day. However, there was support from buying in the end that supported the index to move higher in the afternoon, particularly in the last half hour, owing probably to a recovery in Asian equity markets at the close to bet on Fed meeting results last night.
Today's outlook: As it happened, FOMC meeting results came in as expected. Specifically, the Committee kept benchmark rate on hold. However, it also triggered market concern after 2016 U.S. economic forecasts were revised down. What's more, there was pressure from the weakening of global crude, while investors closely watch what will happen on June 23 when a referendum on Brexit takes place. Given that, although European stock markets ended strongly higher, Wall Street continued to decrease. This morning, most Asian equity markets turned to fall again after they rebounded to positive territory yesterday. For this reason, FSS expects the SET to be volatile and retreat. However, we believe the SET will be able to move up to our 2016 index target of 1500 in the end. For this reason, investors can still hold their current position.
Strategy: Following our recommendation to buy on weakness, we now suggest that investors hold and buy on weakness.
Support 1433-1430 , 1427-1425
Resistance 1436-1438 , 1442-1446
Source: fnsyrus.com / settrade.com
