Last Friday's market: The SET continued to fall last Friday's morning. However, the loss was limited. Moreover, the index stabilized quite well before there was buying to provide support in the afternoon, which made it possible for Thai equity market to turn to end at its daily peak. Specifically, the SET closed up by over six points and continued to move above 1500.
Today's outlook: This morning, investment sentiment in international stock markets remains strong. Although European equity markets were quite volatile and ended the week with mixed results after the ECB did not launch additional stimulus, Wall Street closed slightly up. The S&P500 ended at historical high, positively responding to strong U.S. corporate earnings and economic data. Given that, Asian stock markets continued to open higher, which will help the SET to continue to rally, in our view. However, the index has quickly and sharply rallied lately, while global crude continues to look weak. For these reasons, FSS expects the SET to continue to retreat before it builds up base for a new round of rallies.
Strategy: Investors need to be cautious at this time as the SET looks set to fall in order to build up base before it turns to make a new round of rallies as we have anticipated. In this regard, investors should continue to look for opportunity to sell to lock in profit when the index increases and wait to place new bets on weakness.
Support: 1505-1502 , 1497-1490
Resistance: 1510-1515 , 1517-1520
Source: fnsyrus.com / settrade.com
