SET 50 : Near term support at 753 and 744
April 12, 2011 Leave a comment
The SET 50 might come off a tad due to further corrective move in energy and bank stocks, but we doubt the 744 level will fail. Use 753 as key support for today, but all in all the market can do what it likes today and it will not change the overall bullish trend.
The Libya issue is far from over, so the current volatility in oil and indeed other commodities is only to be expected after such a huge run up. There are however plenty more reasons to worry about in the Middle East North Africa region, and from a geopolitical risk perspective Q2 is fraught with risk, not only for further uprising in the MENA region, but also with Israel and indeed the Iranians who are looking very much forward to the US army’s exit from Iraq.
We doubt oil has peaked for the year just yet, and as far as we are concerned we are looking for NYMEX crude to come off to nearer US$ 98 a barrel, and are using 106.94 as its (NYMEX Light) next support and breakdown point.