Yesterday's market: Although the SET continued to tumble, there was buyback to provide support all day. This has made it possible for the index to steady in negative territory and implies considerable buying in the market.
Today's outlook: We expect the SET to continue to move in the negative territory as investment sentiment in international equity markets is dull this morning after Wall Street ended lower for the third straight day owing to selling to reduce risk prior to a Fed meeting on June 14-15. Moreover, investors remained concerned over a Brexit on June 23. Such anxiety has pressured most European stock markets to fall. Given that, Asian stock markets also opened lower this morning. However, the Asian loss began to decrease, while the SET still has buyback momentum to provide support. Hence, although the index looks set to continue to fall, we bet that it will also be able to stabilize, waiting for rebounds.
Strategy: Although the SET is likely to continue to retreat, FSS believes it will only happen to build up base, waiting for a new round of rallies. For this reason, we maintain our call for investors to buy on weakness and then hold, waiting to sell into strength.
Support 1420-1415 , 1412-1410
Resistance 1426-1428 , 1432-1435
Source: fnsyrus.com / settrade.com
