Yesterday's market: The SET was only able to stabilize in positive territory for half day. After which, there was selling that caused the index to swing wildly within narrow range before the downward pressure won over, driving the SET down by nearly 10 points, thanks probably to a fall in U.S. and European futures and weakening of global crude.
Today's outlook: We expect the SET to continue to move downward after U.S. equity markets moved sideways down last night. In Europe, stock markets ended lower by 1% on average, pressured by crude price which dropped by over 1% due to profit taking after it continued to surge for three consecutive days. Moreover, U.S. dollar turned to appreciate thanks to strong U.S. economic data. Specifically, U.S. weekly jobless claims decreased, while wholesale inventories soared to 10-month peak.
Strategy: Given that, FSS expects the SET to retreat. Meanwhile, market liquidity remains high. Hence, there might be buyback momentum that will support the index when it falls. In the end, the market looks set to turn to rally to our index target of 1500 in the future. For this reason, we recommend that investors buy on weakness and then hold.
Support 1433-1430, 1426-1420 , 1416-1410
Resistance 1438-1442 , 1444-1446
Source: fnsyrus.com / settrade.com
