Daily Markets Briefing: STI up 1.2%

Today’s tone like to turn more downside biased.

OCBC Investment Research said:

The continued retreat on Wall Street overnight is likely to keep the local bourse on the back-foot this morning.

Meanwhile, the STI saw an unexpected 1.2% surge yesterday (on the back of fairly low overall trading value), and is now hovering just below its 6-month vital downtrend resistance.

With today’s tone like to turn more downside biased, we could potentially see the index reversing south from here back towards the 3060 recent trough.

Below that, the next base lies at the 3030 resistance-turned-support. On the upside, 3140 key peak is now the immediate obstacle, with the next hurdle lying at the 3190 key peak.