Daily Markets Briefing: STI up 0.5%

Index to shuffle higher, says analyst.

OCBC Investment Research said:

The continued recovery on Wall Street overnight and the positive Nikkei start (up 0.9% now) could keep local sentiments buoyant this morning.

As a recap, the STI gained some 0.5% and inched back above the 3100 resistance yesterday; however, the bullish break is hardly convincing and it remains to be seen if the recovery is sustainable.

Meanwhile, the index could continue to shuffle higher towards the 3160 level (downtrend resistance), with the next obstacle pegged at the 3230 support-turned-resistance.

On the downside, 3060 is the immediate base (recent key trough), with the next support lying at the 3000 (key psychological support).