BANPU : Key support at 716, and important resistance & breakout level at 737-740
August 4, 2011 Leave a comment
BANPU tracked the SET 50 with a strong correlation in 2010 but has underperformed so far this year by quite a margin. BANPU also tends to be a leading indicator for the SET 50, and this time almost a week before the SET 50 peaked.
Now testing trend support on Wednesday, if BANPU holds firm Friday above 724 at the very least, and preferably at 734 or stronger, then it wil be a good sign (in our view) and one that the broader market will rebound rather soon too.
A move north of 740 on BANPU would be of much interest if flows are strong, giving 780 or so as the technical target.
A breakdown below 716 places 690 as the downside target, and indeed if this does occur we will view it as rather bearish news and a leading indicator of dull days ahead