Yesterday's market: The SET jumped, responding to positive news over the result of the referendum on the draft charter. Moreover, U.S. economic data continued to look good. Investment sentiment in foreign equity markets was bright yesterday and foreign investors registered a high net buy position of nearly Bt6.9bn in Thailand.
Today's outlook: Although the SET continued to surge since mid last week and was able to hit a new high yesterday, the jump was too high. As a result, FSS recommends that investors watch out for selling to lock in profit, which will pressure the index to fall. This morning, although Asian stock markets continued to increase, the gain started to narrow. In addition, some were volatile and moved downward. Last night, Wall Street saw choppy trading and ended slightly lower due to selling to lock in profit after the Dow's recent rally in respond to news about above-estimate employment data and a sharp recovery in global crude price that is followed by a fall this morning.
Strategy: Although FSS maintains our bullish view about the SET, expecting that the index will climb to move near 1650 or close within this year, it is still possible that the SET will fall, serving as an opportunity to buy. For this reason, we suggest that investors wait to buy on weakness.
Support: 1538-1532 , 1527-1520
Resistance: 1543-1545 , 1547-1555
Source: fnsyrus.com / settrade.com
