Yesterday's market: The SET began to see more selling pressure after the index jumped open to a new high. However, there was no new catalyst to provide support. Moreover, several Asian stock markets started to retreat, while selling continued nearly all day. As a result, the SET retreated to end close to its day low.
Today's outlook: FSS expects the SET to continue to decrease after the ECB delivered in-line meeting results. To elaborate, the central bank did not launch additional measures, while global crude continued to weaken to move near its over-two-month low at US$44.5 a barrel once again. In addition, investors were disappointed with Intel Corp.'s earnings results. With that, nearly all Asian stock markets opened lower this morning. What's more, the SET rallied quite quickly and sharply lately. For this reason, FSS expects selling that will pressure the SET to continue to fall for a while. In particular, we expect the index to move sideways down late this month until early next month before it builds up base for a new round of rallies going forward.
Strategy: FSS expects the SET to continue to fall before it turns to increase in the future. As a result, if the market retreats, we view it as opportunity to buy. However, we suggest investors gradually accumulate on weakness.
Support: 1500-1495 , 1492-1482
Resistance: 1505-1510 , 1515-1520
Source: fnsyrus.com / settrade.com
