Daily Markets Briefing: STI down 0.2%

Immediate base pegged at the 3155 mark.

OCBC Investment Research said:

The pull-back on Wall Street overnight could dent local sentiments further this morning.

With the STI failing to retest the 3200 support-turned-resistance yesterday (closed 0.2% lower), we could potentially see the market drifting further south in the days ahead.

Meanwhile, the daily MACD has also started to head lower steadily after a recent bearish crossover; this suggests that the downside momentum could be building up.

On the downside, we still see the immediate base at the 3155 minor trough, followed by the next support at the 3120 key troughs. Beyond the 3200 immediate resistance, the next hurdle lies at the 3230 minor peaks.