Yesterday's market: The SET continued to rally to a new high after U.S. economic data came in stronger than expected. However, there was also near-term profit taking which pressured the index to swing wildly within positive range.
Today's outlook: This morning, there is support from a continuous rise in both U.S. and European stock markets following strong U.S. employment data and expectation that key central banks, i.e the PBOC and the BOE, will launch additional stimulus. In addition, it is expected that Japan will press on with its stimulus program after the party that currently runs the government emerges as the winner in a senate election. However, investors need to remain cautious over near-term selling, which will pressure the market to be volatile and probably retreat after the SET has rallied quite sharply and quickly lately. What's more, global crude turned to weaken once again following a report that Nigeria and Saudi Arabia had increased their oil output, while Thai equity markets will be closed during a long holiday early next week (i.e. July 18-19).
Strategy: Given that, FSS recommends investors continue to hold, waiting for the index to climb to our index target of 1500. If the market decreases, it will serve as opportunity to place more bets.
Support: 1466-1463 , 1460-1458
Resistance: 1470-1472 , 1476-1480
Source: fnsyrus.com / settrade.com
