Last Friday's market: The SET continued to rally to a new high close to 1500, the level that FSS has targeted. However, there was also selling that pressured the index to remain volatile. Moreover, the SET has climbed quite quickly and sharply lately without fresh support. Hence, investors need to be cautious over a retreat.
Today's outlook: Although most international equity markets continued to strongly increased while the SET took a long holiday early this week (i.e. July 18-19), they were volatile and weakness was seen in some of the markets. Moreover, although Wall Street continued to end up during the two days thanks to consistently strong U.S. economic data, the gains began to decrease. In Europe, there were times that equity markets were down after Germany economic confidence index dropped to a low in over than three years. In addition global crude tumbled for both days due to expectation that U.S. oil production will increase after there was report that U.S. oil companies had started to resume operation of their oil rigs. Given all that and the fact that the SET has sharply increased, investors need to be cautious over selling to lock in near-term profit which will pressure the market to retreat.
Strategy: FSS continues to recommend that investors wait to buy on weakness. If the SET increases, investors are suggested to sell into strength and wait to buy back when it decreases.
Support: 1490-1485 , 1483-1480
Resistance: 1493-1495 , 1498-1500
Source: fnsyrus.com / settrade.com
