Latest thoughts from our Queen Chartist Ploy. Essentially she’s looking for 1. SET out-performing, 2. Baht strengthening, 3. BGH continuing upwards and 4. Gold likely to hold its recent rebound.

The US dollar index has reached the resistance I gave last week, and is now backing down from the given resistance. Also the SET is poised to out-perform, relative to the US Dollar index. This is the positive signal for the SET.

Updating the last week’s chart, the Baht/Dollar exchange rate has breached above the given resistance at 31.30 baht/dollar, but the breakout doesn’t look very strong and based on the outlook on the US dollar, as said above, we may expect that the Baht may become stronger against the US Dollar. If the Baht really strengthens against the Dollar, it may push the SET above the resistance at 989. This 989 resistance is an important barrier since the breakout means that the SET can stay above its down channel. The next psychological resistance is at 1,000.

The support in the SET is revised to 965. The stoploss signal will occur when the SET falls below this support.

Overall, the situation looks more positive and we may face the SET’s resistance at 1,000 soon.

One of the out-performed stocks is BGH. It made a New High last week, and from Technical point of view, it may head up to test the barrier at 90 and 95. The three-digit target is likely. The supports for BGH are as given in the chart.

Updating the LME Gold spot, the Gold price has rebounded beautifully from the $1,663-1,660 support and slightly breached above the given barrier at $1,695-1,710. It must breach above the barrier at $1,720-1,725 in order to get back into its up channel. Given the more positive outlook, we may take risk adding Gold to our portfolio and add more to the position on the breakout. The stoploss line is at $1,679.

Thanks ploy! You can contact her directly @ ploy@thaicapitalist.com