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

The SETI broke the 640 points resistance levels as the bulls are controlling the market. It is one of the best performing markets in the Asian region despite government protestors planning to stage massive protests in the last weekend of August. At 656.98 points, the benchmark index is almost at a year’s high. The SETI is still hovering above the 50% Fibonacci retracement level from the bear trend in early 2008.


Weekly SETI chart as at 28 August 2009 using NextVIEW Advisor

The trend continues to increase but with a weaker strength. Momentum indicators like the RSI and Momentum are showing short term bearish divergence. If the index is able to maintain above 640 points, it is likely going to test the next resistance level at 700 points. However, if the index falls below the 640 points support level, expect the market to correct further.

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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.