SET Index : Strong resistance from 1092-1100
May 22, 2011 Leave a comment
The SET Index may take longer to break down than many other emerging markets, due in no small part to the coming national election. However we view this as a temporary respite at best, and in coming weeks the Index will pull back to 990-1010 and quite possibly a good deal lower.
This is not to say trading opportunities will dry up – they wont, but risk is increasing, and longer term and swing trade exposure in blue chips should be paired back for a while in our view, with a bias towards shorting the SET 50 futures in the not too distant future.
First resistance runs from 1085 to 1092, and a retest is possible. For Monday 1064 seems a half decent support, but a dip to 1055 is but a bad day and hefty sell-off in the USA away.