Daily Markets Briefing: STI up 0.5%

Market may attempt to test the 3200 support, says analyst.

OCBC Investment Research said:

Good showing on Wall Street overnight could continue to keep local sentiment buoyant, adding to the STI’s 0.5% gain yesterday.

However, the market may stage an attempt to test the key 3200 support before moving higher again, especially if it fails to clear the initial 3224 hurdle (upper Bollinger Band) in early trade.

But should 3200 hold, we could see a pretty decent run up to the subsequent resistance at 3248 (previous peaks and troughs) and potentially 3300.

Daily technical indicators continue to remain relatively positive – the MACD is still trending up steadily, while the RSI is also rising after a recent rebound off the 50% level.

Below 3200, we peg the next support at 3176 (middle of Bollinger band).