
Daily Markets Briefing: STI up 0.7%
Index likely to take a breather today.
OCBC Investment Research said:
The retreat on Wall Street overnight and the negative Nikkei start (down 0.2% now) are likely to cue the local bourse to a negative opening this morning.
After overcoming the 3250 key obstacle yesterday with a 0.7% gain, the STI could potentially take a breather this morning.
We do not rule out a retracement to retest the 3250 level. A successful rebound from there could propel the index to the subsequent resistance at the 3320 key support-turned-resistance in the weeks ahead.
Beyond the newly established 3250 resistance-turned-support, the next base is pegged at the 3200 level (recent trough).