Stock Exchange of Thailand Index (SETI) – Bulls taking charge again

The Thailand market went into a downward correction after the SETI rallying slightly above 50% from about 410 points in March to 628 points on 12 June. The SETI then went to a low of 560 points in mid-April before ascending to the current level of 624 points. Despite the political uncertainty in Thailand, the market performed pretty well. Just a year ago the benchmark index was trading above 800 points. Therefore the SETI has retraced 50% from the bear trend that started in early 2008 and this is comparable to markets like Singapore and Hong Kong.


Daily KLCI chart with volume as at 31 July 2009 using NextVIEW Advisor Professional

Technically, the market is still in a major up trend correction with the short term 30-day moving average declining while the longer term 60 and 90-day moving averages are increasing. The bulls have taken over from the bears last week when momentum-based technical indicators like the RSI and Momentum are now above the mid-level. With this bullish momentum, the SETI may test and break above the 640 points resistance level and possible move to the next resistance level at 700 points. SETI support level is at 560 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.