Daily Markets Briefing: STI up 0.73%

Brace for profit-taking today.

According to OCBC, continued mixed showing on Wall Street overnight could cut short the STI's 0.8% technical rebound yesterday and bring about profit-taking once again, especially if the index fails to clear the key 2900 support-turned-resistance level.

Here’s more from OCBC:

With the daily MACD still sliding towards the centre line after the recent cut down and the RSI just falling past the 50% mark, the near-term outlook remains somewhat negative.

As such, we could still see the index easing back towards 2850 or even 2800 if it fails to punch through 2900; but a break could see it heading back towards 2950.

Overall volume improved 9% to 1.75b units traded, but total value eased 8% to S$1.40b, as average value/unit fell 16% to S$0.80.