Daily Markets Briefing: STI up 0.5%

Expect more gains today.

According to OCBC, with US stocks registering further gains on Wall Street overnight, this is likely to inspire the local bourse to a similarly positive start as well this morning.

Here's more from OCBC:

After another 0.5% rally yesterday, the STI could continue to inch higher in the direction of the 3600 psychological resistance.

But with the daily RSI already deep in the overbought region (at a value of 79%), we expect a technical correction to come in soon; this will help bring the index to a more sustainable uptrend over the medium term.

On the downside, we are pegging the immediate base at the 3460 newly established resistance-turned-support.