Yesterday's market: Although the SET continued to be volatile in the morning session, there began to be support from buying in the afternoon to speculate on BOE meeting results, which made it possible for the index to increase to a new high near 1490.
Today's outlook: The BOE meeting results are not in line. Specifically, the central bank kept its policy rate on hold and did not launch additional measures to cope with Brexit impact. However, the BOE also signaled that there might be a rate cut at a meeting in August, which helped most U.S. and European equity markets to continue to end higher. Moreover, global crude recovered to end up yesterday. Given that, most Asian stock markets continued to move in positive territory this morning. Such rises are likely to lend support for the SET to continue to rally. However, the index is about to go on a long holiday next week (i.e. July 18-19), while global crude continues to look weak. What's more, the SET has rallied quite sharply lately to bet on BOE meeting results, which came in disappointing. Hence, investors need to be cautious over selling to lock in near-term profit, which will pressure the market to decrease.
Strategy: Since the SET is likely to be volatile and decrease at this time, FSS recommends that investors wait to place more bets on weakness. However, we view there is prospect that the SET will climb to above 1500. For this reason, we suggest that investors hold already have positions and wait to sell at 1500 or higher to lock in profit.
Support: 1485-1483 , 1480-1475
Resistance: 1490-1492 , 1496-1500
Resistance: 1490-1492 , 1496-1500
Source: fnsyrus.com / settrade.com
