Daily Markets Briefing: STI up 0.9%

Index predicted to open higher today.

OCBC Investment Research said:

The local bourse is likely to take cue from the strong Nikkei start (up 1.7%) and open higher this morning.

After a fairly strong 0.9% recovery yesterday and with its 2-year uptrend support holding firm, the STI is now likely to head further north and test the 3070 key support-turned-resistance next.

Meanwhile, with the MACD seemingly forming a bottom and the RSI already climbing out of its oversold region, this suggests an improving upside momentum.

Beyond the 3070 obstacle, we see the next hurdle at the 3130 minor support-turned-resistance. On the downside, 3000 is still the immediate key support, with the subsequent base pegged at the 2930 key trough.