SET likely to continue to retreat; wait to buy on weakness Yesterday's market: Although the SET turned to move in positive territory, it was volatile, swinging wildly within the range seen since last week. Moreover, there was selling pressure nearly all day because there was no fresh catalyst, while global crude remained weak.
Today's outlook: The Fed delivered in-line meeting results last night. Specifically, the FOMC decided to keep policy rate on hold. Given that, most European stock markets were able to end up, supported by strong corporate earnings of leading companies in France, while Wall Street closed slightly down. Nonetheless, the Fed Chair indicated that the U.S. central bank should hike benchmark rate this year, while there are three more FOMC meetings scheduled in September, November and December. Global crude continued to tumble by over 2% after U.S. oil inventories increased. This morning, most Asian stock markets continued to open lower and move in negative territory. Given that, FSS continues to expect the SET to fall.
Strategy: FSS maintains our call for investors to buy on weakness after the index has rallied quite sharply lately without fresh catalyst to provide additional support. Moreover, it is suggested that investors sell to trim portfolios when the index increases.
Support: 1510-1505 , 1502-1497
Resistance: 1516-1518 , 1520-1524
Resistance: 1516-1518 , 1520-1524
Source: fnsyrus.com / settrade.com
