Yesterday's market: The SET continued to move in the same pattern. To elaborate, it increased right after the bell to a new high. However, there was intraday profit taking that pressured the index to be volatile and end at the day's trough.
Today's outlook: Yesterday, we continued to see selling when the SET increased, which pressured the index to be volatile from time to time. This morning, international markets are not very bright after Wall Street was volatile overnight and ended slightly down due to global crude which tumbled by nearly 5% after the EIA reported that U.S. oil inventories decreased lower than expected, resulting in persistent investor concern over excess supply. Given that, most Asian stock markets turned to open lower this morning. Moreover, FSS expects the SET to retreat after the index has continuously hit new high lately. However, we believe the SET's downside to be limited as investors remain optimistic about U.S. non-farm payrolls that are due out tonight after the ADP private-sector employment data increased more than expected.
Strategy: FSS expects the SET to fall, which will serve as opportunity to buy, before the index climbs to our index target of 1500 going forward. For already-have positions, we continue to recommend that investors hold.
Support: 1455-1452 , 1447-1444
Resistance: 1458-1460 , 1462-1464
Source: fnsyrus.com / settrade.com
