SET 50 Index : The bulls are hoping for a weekly close above 720
March 9, 2011 Leave a comment
The SET 50 spent 6 days bouncing off the 717-720 range in early January before the bears took over the pullback accelerated, so we should treat 720 as a big number for the Index.
With first support below 712 at the gap range created earlier in the week from 704.72 to 702.78, Thursday and Friday’s trading will be of much interest with a strong close at or above 720 likely to turn even die hard bears around.
We think the earlier post re Bahrain’s Shiite opposition is however something that could derail progress, because the net effect of an oil shock to 120 for NYMEX will likely see institutions reduce exposure, and most equity markets likely to take a break in our view.
There could be a move to 720 or so before the weekend, and possibly multi tests of the resistance.
Dow futures (as seen below) are looking pretty bullish though, with a breakout move overnight for the relentless bull will be a supporting factor for the SET 50 to have a go at 720 right off the bat at open.