Daily Markets Briefing: STI up 0.63%

Expect muted gains today.

According to OCBC, following the muted close on Wall Street last Friday, the local bourse may be due to take a pause as well, especially after the strong run over the past two weeks after Brexit.

Here's more from OCBC:

While the STI ended 0.6% higher last Friday, it may also be slightly distorted by the shortened trading session on Thursday; in any case, the price action may have formed a potential reversal signal, which could send the index back to re-test the key 2900 support

Although overall volume jumped 243% with 2.67b units traded and total value surged 327% to S$1.45b, while average value/unit rose 23% to S$0.54, much of it was distorted by Thursday’s session.

On the upside, we peg the next resistance at 2954, ahead of 2990; initial support at 2920, ahead of 2900.