Yesterday's market: The SET saw higher-than-expected support from buying, particularly in banks, which made it possible for the index to only fall after the bell. After which, the SET stabilized and rebounded to a new high in the afternoon to end up by nearly 10 points, sharply outperforming its regional peers.
Today's outlook: Global crude continued to drop by nearly 2% due to concern over supply glut, disappointing U.S. corporate earnings and a higher-than-expected rise in U.S. weekly jobless claims. They all pressured Wall Street to continue to move in negative territory and end slightly down. In Europe, there was still worry over banks after their earnings results came in quite weak. With that, investors will have their eyes fixed on European banks' street test; whose results are due out today. Meanwhile, the SET has rallied quite sharply lately. For this reason, FSS expects the SET to fall in the near term.
Strategy: The SET continued to strongly increase. As a result, FSS views that risk is high and the need to be cautious over a fall previals. What's more, we recommend that investors do not buy into strength. To place a bet, wait to make it on weakness. If a lot has been sold, it might be a good idea to slow the selling.
Support: 1520-1516 , 1510-1500
Resistance: 1526-1530 , 1536-1542
Source: fnsyrus.com / settrade.com
