Yesterday's market: The SET continued to hit a new high in the beginning. However, there was selling that pressured the index to be volatile and caused the market to move more in the negative territory in the afternoon due to lack of fresh catalyst. In particular, measures to cope with Brexit impacts were unclear. As a result, some investors chose to sell to lock in profit and reduce risk.
Today's outlook: Yesterday, the BOE did not make it clear much about measures to cope with Brexit impacts, while the Financial Stability Report only said that the U.K. was facing challenges. Moreover, there was pressure from nearly 5% drop in global crude after there was report that Nigeria and Saudi Arabia increased their oil output, while investors continued to feel concerned that Brexit impacts would dampen energy demand. Given that, most European stock markets closed down by over 1%, while Wall Street ended lower by over 100 points. In Asia, stock markets opened lower once again and began to tumble. Hence, the SET is still likely to move sideways down.
Strategy: As FSS expects the SET to fall to build up base and to wait for a new round of rallies to our target of 1500, we recommend that investors continue to hold and selectively buy when the market decreases.
Support: 1447-1445 , 1440-1436
Resistance: 1452-1455 , 1458-1462
Source: fnsyrus.com / settrade.com
