The rebound for Thailand’s SET could be coming to an end sooner rather than later.
The rebound for SET is in line with our calls (see crossroads for the past week and also 14th September issue).
SET’s current rebound has a corrective look and is stuck within a trading channel.
From a pattern analysis, we see a bearish flag taking form here. The rebound appears to still have legs albeit a tad more towards 1,439-1,452, where both are Fibonacci targets.
The downtrend channel resistance from the 1,620 highs comes in at around 1,435. We expect prices to find strong resistance within the 1,435-1,460 levels.
A sharp fall below 1412.49 would boost the idea that a top may be in place at 1429.41 while falling below 1,399.87 would likely confirm it.
Strong rallies to above 1,478 would require us to reassess our MT and LT views. We remain bearish on SET on the LT. (Read Report)
Source : CIMB Research