Tuesday, December 15, 2015

Chart of the Day: Bears Reclaim Thailand's SET


Following yesterday's decline, Thailand's SET has regressed back to the bear market territory


The above represents the chart of the day: Thai's major equity benchmark the SET has fallen by 21.55% from the February peak (as of yesterday). 

The SET has already broken the August 'yuan devaluation' lows and seems at pace to test the December 2014 support. (images from Bloomberg)


Of course, the SET's weakness can be traced to the rising US Dollar as seen via the resurgent USD THB (via Google finance). 

Given the current pace of appreciation of the USD relative to the Thai bath, it would seem that a possible breakout by the USD Thb from the September highs would be manifested or coincidental with a likely breakdown by the SET of December lows.

What would be the ramification from such scenario? We'll find out soon.

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