Last Friday's market: The SET decreased in the beginning by nearly 10 points after global crude continued to drop by almost 5%. However, the index began to pick up in the afternoon because crude started to stabilize better and investors were optimistic that U.S. employment data would come in strong.
Today's outlook: Although the SET ended lower last Friday, there was buying that supported and erased its early gain in the afternoon. This morning, international markets turned bright again, supported by U.S. employment data that was higher than expected, which indicates consistently strong U.S. economy. Meanwhile, global crude also stabilized well after it sharply tumbled the other day and managed to end slightly higher. Given that, Asian equity markets opened up this morning. Moreover, most of them rallied by over 1%. For these reasons, FSS expects the SET's fall to be brief and there is prospect that the index will climb to our end-2016 index target of 1500 going forward. In addition, we recommend that investors hold, waiting for the SET to increase, before considering about profit taking.
Strategy: Following our call for investors to place more bets on weakness, we now suggest that investors hold, waiting for the index to climb to our target of 1500 in the future.
Support: 1453-1450 , 1445-1443
Resistance: 1458-1460 , 1462-1464
Resistance: 1458-1460 , 1462-1464
Source: fnsyrus.com / settrade.com
