Daily Markets Briefing: STI up 0.1%

Next support pegged at the 3034 mark.

OCBC Investment Research said:

Renewed weakness on Wall Street could start to weigh on local sentiment today.

Although the STI ended with a modest 0.1% gain, we note that it was way off the intraday high; this as the market not only looks overbought (been on an uptrend since 4 Feb), but the stochastic indicator has also just cut down.

As such, we could see a pullback towards 3093 (middle of Bollinger Band). While we peg the next support at 3034 (lower Bollinger Band), we note that there is a bearish parabolic trigger around 3075.

On the upside, recent 3158 high will act as the initial peg (also near upper Bollinger Band), ahead of 3187 (another recent high).