Daily Markets Briefing: STI up 1.9%

Index poised to break the 3180 mark.

OCBC Investment Research said:

Continued strength on Wall Street overnight could keep the local bourse fairly buoyant this morning.

With the STI decisively overcoming both its 3130 resistance and 4-month downtrend resistance after a strong 1.9% rally yesterday, it looked set to attempt a break of the 3180 immediate resistance today.

Meanwhile, the MACD is still climbing steadily towards its centerline, this suggests that the upside momentum remains intact.

Should the 3180 obstacle be taken out, the index will likely test the 3220 support-turned-resistance next. On the downside, 3130 is now the newly established resistance-turned-support, followed by the next base at the 3070 support.