Analysts Expect SET to Roll with the Momentum and Challenge the 1,525 Resistance Level

Stocks in Asia continued to rally at a slower pace in the morning session on Tuesday after a significant increase in the stock markets yesterday in response to the upcoming U.S. stimulus package and the rising oil prices.

 

As of 9:25 local time in Thailand on Tuesday, Nikkei rose 0.41%, SSEC increased 0.54%, HSI gained 0.25%, Kospi gained 0.96%, while ASX200 dropped 0.36%.

Yesterday, SET Index closed at 1,516.43 points, increased 19.82 points or 1.32% with a trading value of 94.2 billion baht.

 

Krungsri Securities expected SET Index to test the resistance level at 1,525-1,530 points, following the development of the U.S. 1.9 trillion stimulus package and the vaccine jab, thus, expecting the economy to recover faster than expected. Meanwhile, crude oil prices also hit a one-year high, which will benefit the energy sector.

 

CGS-CIMB Securities estimated the Thai stock market to edge higher, following global markets in response to the U.S. stimulus package that was expected to be effective before March 15, 2021. Meanwhile, the buying of Bitcoin from Tesla also boosted the momentum in Nasdaq to increase as the Fed is expected to maintain policy rate near zero.

The security company expected the support level for SET Index at 1,507-1,500 points and a resistance level at 1,525-1,530 points.