PROPERTY Sector : A rally to 200 points still poissible
July 26, 2011 Leave a comment
The SET property sector may need to consolidate back to 155-60 or so, but will likely not go below this range, with a fresh challenge of the 2010 high at 166.85 not going to take too long. We view a breakout above 167 during Q3 as likely, from where there should be a rally to 200 or so.
There is some resistance at 175. What we expect to happen is for volume in the top stocks in the sector to increase on the back of fresh position taking by market makers, syndicates and overseas funds, which will spark a good old fashioned retail move in to the stocks for a short period of time. If there was an Prop Index futures contract, we would buy on the dip or indeed on the break.