Daily Markets Briefing: STI down 0.89%

Brace for a pullback today.

According to OCBC, the rebound on Wall Street overnight could spark a similar relief rally in the local bourse this morning; the Nikkei opened nearly 1% higher.

While the STI is already starting to show a potential reversal signal (RSI is also just a shade above the oversold region), it remains to be seen if the index can convincingly retake the key 2900 level, OCBC said.

Here’s more from OCBC:

As before, a continued failure to do so would not bode well and could see the index easing back towards 2800 before finding a stronger base.

Above 2900, we peg the next resistance at 2950, ahead of the key 3000 level.

On the downside, the next support is at 2850; but the key one remains at 2800.