Thailand SETI: Breather for the Bears

Thailand's economy has been taken slowed down because of the current political situation, the government's lack of effort in handling inflation crisis, and the escalating problems in the south. These factors have led the bears to be in control in the financial markets.

The benchmark Stock Exchange of Thailand Index (SETI) fell to 664 points just a few weeks ago and two months prior to that low the SETI was at 880 points. The SETI fell 216 points 0r 24.5% in just 2 months and this sent negative vibes to the investment community who now fear whether the bears would bring the market down further.

The SETI is currently at 678.66 points (as of Friday, 1st if August). After hitting the low of about 664 points few weeks ago, the SETI made a rebound, but only to find the previous support level of 700 points now becomes the resistance.

The current trend is extremely bearish. However, the support at 660 points may provide some breather for bears and opportunity for the bulls to gain foothold and fight back. It is still early to identify whether this support level is strong or weak. This depends on the SETI performance this week. We'll see the bulls fighting back if the SETI is able to break the 700 points resistance level. Failing to do so would cause the SETI to slip further to the main support level of 600 points.

Commentary and analysis by Benny Lee