Yesterday's market: The SET continued to be volatile and move within positive territory. After the bell, the index surged by nearly seven points. However, it was pushed back to slightly retreat by near-term selling before it turned to end the day with a gain of nearly seven points as investors continued to wait for stimulus from key economies.
Today's outlook: The SET is likely to continue to hit a new high after most U.S. and European stock markets ended up overnight, a catalyst that helps support Asian equity markets to be bright this morning and is expected to stimulate buying in Thailand. Such gains are attributed to investor optimism that the BOE will increase its QE in order to cope with Brexit impacts. Moreover, global crude also recovered by almost 5% after the OPEC's projection that demand would exceed current supply. Moreover, the oil cartel also predicts bright crude oil outlook for next year. However, the SET has quickly and sharply increased. Hence, we recommend that investors exercise caution and watch out for near-term selling that will pressure the index to be volatile, while the SET will be closed for a long holiday early next week (i.e. July 18-19)
Strategy: FSS recommends that investors continue to hold, waiting for the index to reach our target of 1500 going forward. However, if it decreases, that will serve as opportunity to place more bets.
Support: 1470-1466 , 1463-1459
Resistance: 1477-1480 , 1482-1484
Source: fnsyrus.com / settrade.com
