Yesterday's market: The SET moved in narrow range in the morning. However, there began to be continuous selling pressure once again in the afternoon due to lack of fresh catalyst. Moreover, the index has rallied quite sharply lately, while global crude continued to weaken.
Today's outlook: Global crude continued to decrease due to concern over supply glut after there were reports that both U.S. oil rigs and oil production in OPEC countries increased. Given that, Wall Street was volatile and ended lower. However, the loss was modest. In Europe, most stock markets managed to end modestly up as they waited for results from FOMC meeting and the Fed Chair's statement this evening. This morning, Asian equity markets continued to move up. However, the gain was limited. As a result, FSS expects the SET to move in narrow range after the index tumbled quite sharply yesterday. However, since there is no fresh catalyst to provide support, we continue to believe that the index will rather move down.
Strategy: We expect the SET to continue to retreat to build up base before it turns to a new round of rallies. For this reason, after investors have sold into strength to lock in profit, we now recommend that investors wait to buy on weakness.
Support: 1502-1497 , 1493-1490
Resistance: 1507-1510 , 1515-1518
Source: fnsyrus.com / settrade.com
