Daily Markets Briefing: STI up 0.5%

Expect some profit taking.

According to OCBC, the local bourse could see some profit-taking on the back of the more muted Wall Street showing overnight, especially after yesterday’s 0.5% gain.

Here's more from OCBC:

We also note that the index did not quite manage to clear several hurdles around 3279, posed by the 30-DMA, mid of Bollinger Band.

Furthermore, the daily technical indicators are mostly just trending sideways, although stochastics suggest that the market looks a tad oversold (but have not turned up yet).

Hence, we are more likely to see a pullback towards 3266 (uptrend support since early Feb 2014), but do not expect the index to test 3212 support (38.2% retracement of 3053-3311 rally).

On the upside, a surge above 3293 would trigger a parabolic buy signal.