The Thailand SET was down 1.08% for the week after hitting a 52-week high at 1610.78 on Monday. The Bank of Ayudhya [SET:BAY] trade may be over after skyrocketing over 100% in two weeks as both the Bank of Ayudhya and Mitsubishi UFJ have denied any takeover speculation.

One may want to be aware of Monday's intraday reversal. The intraday reversal occurred as the SET opened with a gap up at 1602.13, just above the key resistance of 1602. After an initial run up to 1610.78, or the 52-week high, sellers stepped in and took control of the market. 

The trading pattern repeated itself like clockwork for the rest of the week, meaning a SET run-up during the morning session, followed by a sell-off during the afternoon session. From the price action, the SET appeared to ignore last week’s major financial events including the Greece debt standoff, the Federal Open Market Committee (FOMC) meeting and the U.S. GDP report.

The Thailand 10-Year Government bond yield printed last week in a narrow range between 2.71% and 2.82%. The 10-year U.S. Treasury yield took a 7.82% nosedive for the week and closed on Friday at 1.639%. Foreign investors may not have sold riskier assets in Thailand all that much last week as the spread between the Thailand 10-Year Government bond yield and 10-Year U.S. Treasury yield is widening again.

From the Moving Average Convergence/Divergence oscillator (MACD pronounced “Mac-Dee”), the MACD line is begining to turn downward, signaling increasing downside momentum. One may want to pay attention to the bearish crossover, when the MACD turns downward and crosses below the signal line, as it is a sell signal for active traders.

In case the SET decides to slide further, there are several resistances between 1580 and 1562.