Daily Markets Briefing: STI up 0.7%

Index poised to recover further, says analyst.

OCBC Investment Research said:

The rebound on Wall Street overnight and the positive Nikkei start (up 0.7% now) are likely to keep local sentiments fairly buoyant this morning.

After registering a 0.7% gain yesterday and conquering the 3160 immediate obstacle, the STI is now poised to recover further today.

However, we note that the key obstacle to watch out for is still the 3230 key support-turned-resistance; until this hurdle is being taken out, investors are still likely to remain cautious in the near term.

Meanwhile, the next milestone is marked at the 3320 support-turned-resistance. On the downside, 3160 is now the immediate resistance-turned-support, followed by the subsequent base at the 3100 key trough.