Daily Markets Briefing: STI up 0.6%

Expect more gains today.

According to OCBC, the positive Wall Street showing overnight and the impending QE measures in EU should continue to keep local sentiment buoyant.

Here's more from OCBC:

However, after the STI’s 0.6% gains yesterday (and 0.8% the previous day), further sharp gains may be unlikely.

While market volume finally broke the 2b unit mark, average value per unit traded remains low around S$0.54.

We also note that the daily stochastic indicator is still trending lower, although the MACD has started to turn up again.

As such, profit-taking could emerge should the index fail to convincingly clear the 3375 hurdle (recent peak). On the downside, we peg the immediate support at 3320 (30-DMA, 50-DMA), ahead of 3300 psychological level.