Stock Exchange of Thailand Index (SETI) – Bullish momentum is still strong

The Thai Equity market has been very bullish and is one of the best performing markets again this month. Investors were on broad-based buying spree. The benchmark SETI index even broke and stayed above the 700 points resistance level to close at 717.07 points after hitting a 14-month high at 731.58 points. The index so far has increased 63.82 points or 9.7% since a month ago. The SETI is current hovering around the 61.8% Fibonacci retracement from the bear trend that started from the high in November 2007 to the low in December 2008.


Daily SETI price as at 30 September 2009 using NextVIEW Advisor

The momentum of the trend is generally strong with a little weakness in the short term because of the pullback from the 14-month peak. Most momentum indicators are above the mid level and this means that the bulls are still dominating. The index may test the 700 points support level and a good short term trading opportunity is available here as the market is set to make newer highs with resistance at 795 points because of the strong bullish momentum. If the index is unable to hold above 700 points, then the market is set to extend the correction to the next support level at 650 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.