Last Friday's Market: The SET continued to increase in the beginning of the trading session. However, there was no fresh catalyst. Moreover, most Asian equity markets began to retreat after the BOJ delivered lower-than-expected meeting results, while global crude remained weak. Given that, the SET moved mostly in negative territory in the afternoon session. Nonetheless, the loss was quite modest.
Today's outlook: We expect the SET to continue to be capped and retreat because Wall Street made another retreat after U.S. 2Q16 GDP expanded lower than expected. However, the loss might not be large after most European stock markets continued to end higher because, according to the most recent stress test, most European banks were still strong enough to weather a fall in economy and volatility in the financial market. What's more, global crude started to stabilize better near US$41 a barrel after it tumbled from US$46.7-47 a barrel in mid-June. With that, the SET still stands a chance to steady in the near term.
Strategy: However, FSS continues to recommend that investors remain cautious over selling, which will pressure the SET to continue to decrease. Furthermore, we suggest that investors do not buy into strength and wait to accumulate on weakness. Finally, if a lot has been sold, it is advisable that investors slow their selling.
Support: 1522-1518 , 1515-1513
Resistance: 1527-1530 , 1536-1542
Source: fnsyrus.com / settrade.com
