Thailand: SETI Bullish momentum is still strong

The Thai equity market was generally bullish in the beginning of October and the (Stock Exchange of Thailand Index (SETI) made a new 13-month high at 758.55 points. The market turned into a very volatile mode starting middle of last month when investors have generally lost confidence as the country’s positive sentiment was setback again by political protests. The recent speculation that HM the King was dying sparked panic in the market and the SETI plunged 10% from 746 points to a low of 671 points in two days. It rebounded immediately to 738 points in three days but was dragged down again to close at 685.24 points.

The short term trend has started to decline but the long term trend is still up with a support level at 665 points, based on a 90-day moving average. The index is currently at a 60-day average. Momentum indicators like RSI, MACD and ADX have started to indicate bearish strength. The index failed to stay above the 700 points support level and therefore it is expected to test the next support level at 650 points, as mentioned last month. The index is expected to rebound at 650 points and the resistance level is now the previous support level, which is 700 points.


Weekly SETI chart as at 30 October 2009 using NextVIEW Advisor

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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.