Daily Markets Briefing: STI down 0.1%

A rebound may happen today.

The 1% rally on Wall Street overnight is likely to inspire the local bourse to a positive start this morning, according to OCBC Overnight Commentary.

Following yesterday’s mild 0.1% pull-back, OCBC adds that the STI could initiate a rebound and inch higher towards the 3340 immediate resistance today.

Technically, the daily MACD has also started to show signs of rounding a bottom just above the centerline; this suggests that the recent downside momentum could be waning.

Above 3340, OCBC sees the next hurdle at the 3380 key peak. On the downside, the immediate support is still tagged at the 3280 recent trough, followed by the next base at the 3230 key trough.