Yesterday's market: The SET continued to end up to a new high amid volatility as investors waited for results from BOE meeting on July 14 whether there would be measures to cope with Brexit impacts.
Today's outlook: Although most U.S. and European stock markets remained optimistic about BOE meeting results today that there would be additional measures to cope with Brexit impacts, there began to be selling that pressure European equity markets to end lower. Moreover, the Dow also swung wildly before it closed modestly up. Given that, most Asian stock markets were volatile and moved within narrow range this morning, while some opened lower. What's more, global crude turned to fall again last night after the EIA revealed that U.S. oil stockpiles recorded smaller-than-expected drop, implying excess supply remained high in the U.S. Finally, the SET has quickly and sharply increased lately and is about to go on a long holiday early next week (i.e. July 18-19). Hence, investors need to exercise caution over near-term selling, which will pressure the market to go down.
Strategy: FSS continues to recommend that investors hold, waiting for the index to reach our index target of 1500. However, the market has quickly and sharply increased. Hence, investors need to exercise caution over volatility and weakness in the near term. For new bets, investors should wait to place them on weakness.
Support: 1475-1470 , 1466-1460
Resistance: 1480-1483 , 1486-1490
Source: fnsyrus.com / settrade.com
