Written on Jun 14, 2013
According to Leonardo Fibonacci’s theory, the SET might bounce to touch the 1465.72 level this round, which equals to 61.8% (see pic1). A return of foreign investors to buy USD45 million in the stock market along with the strengthening baht to 30.71 this morning from yesterday’s high of 31.08 are signaling that inflows are coming back and downside could be protected at the moment. This game is not too complicated, I think. Just follow the flow, enjoy, and beat it. On the other hand, if you count the waves starting from Oct 2011 (flooding time), the SET is now establishing wave B (see pic2) and it could extend and end at 1465.72 due to the Fibonacci number mentioned above. Nonetheless, if wave A hasn’t finished yet, the SET could then dive lower to 1246 level, which I don’t think it will happen soon. Lastly, apology for my headline spelling. It should be “Elliott wave” not “Idiot wave”.
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