Futile bull effort on Thailand market

The Stock Exchange of Thailand Index (SETI) was well supported at 660 points level. In my previous analysis of the Thailand market, I mentioned that there is only a fight back from the bulls if the SETI overcome the 700 points immediate resistance.

The SETI made rebound after testing the 660 points support level and overcame the 700 points resistance last week. However, price was having a "brain freeze" once overcoming this level. It was not able to hold above 700 points and it is now below it. The SETI closed at 691.33 points on the 19th August 2008.

Technically, the SETI is still in a down trend. However, the momentum of the down trend is deemed weak because of the bullish divergence on momentum indicators like RSI and Momentum. This indicate that there is a low chance of price breaking below the current support level which is 660 points.

The bulls effort may be futile, now that the Asian markets and other markets round the world come crumbling down. Expect the SETI to test the strong 660 points support level and like I have mentioned in my previous commentary, if SETI breaks below this support level, the next support level is at 600 points.


Daily SETI chart as at 19 August 2008, using NextView Advisor

Commentary and Analysis by Benny Lee