SET Index : If 1124 fails, next supports at 1110-1113 then 1100
August 4, 2011 Leave a comment
In yesterday’s comment we said “for this week a close above 1140 would be ideal, but as long as 1124 is not taken out on stronger institutional selling a retest of recent highs and probably a 1150 handle on the SET Index for a few ticks is certainly possible.”
Thursday saw local institutions selling, but not foreigners – or not yet anyway, and for us this is key. When the foreign fund flows turn – as always run for the hills.
Now the SET day chart shows a bearish engulfing type pattern which suggests further downside is likely, but unless global markets take an absolute hammering overnight we doubt very much if 1110-1113 will fail just yet.
Initial resistances for the index are 1131, 1134 and 1137, and given the market has broadly ignored the global trend this past fortnight, a rebound Friday can not be ruled out, even with a short term bearish formation on the chart.