SET Index showing signs of life

Price at time of writing – 1372.

Thailand’s SET index is another emerging market showing signs of renewed life.

Despite the political uncertainty that dominates much of the Thai news headlines, the SET has recovered strongly since its significant low in early January.

The rally from the March 2009 major low was impressive and eventually peaked after the completion of a 300% advance. The index had earlier hesitated after hitting lines representing gains of 100% and 200%, as requested in Gann-theory analysis. The initial fall from this high measured 16.66%. It then entered a period of choppy sideways trade, before extending this correction to one of 25% in January. January’s low looks more durable, however, and is now supported by a cluster of four independent Gann-percentage lines. This tightly aligned support band should hold firm. Alternatively, any breach of this band (defined as 1230-1237) can be considered as the trigger to unleash the next downward lurch.

It is not particularly obvious on the chart, but the 1374 level holds some significance. A break above this level should be used as the trigger to buy the index (note we are very close to this level following today’s rise), with the target then becoming 1607. Only isolated resistance at 1406 holds any concern, where a period of sideways consolidation may occur.

Recommendation: prepare to buy on a break above 1374. The target then becomes 1607. Stop-losses can be activated on a break below 1230.

Thailand SET index chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.