Daily Markets Briefing: STI down 0.9%

Analyst predicts a poor opening today.

OCBC Investment Research said:

The sharp retreat on Wall Street overnight and the weak Nikkei start (down 1.3% now) are likely to spook the local bourse to a poor opening this morning.

Following a near 0.9% slip yesterday, the STI looks set to crack the lower boundary of its trading range at the 3200 psychological support today.

Meanwhile, the MACD has also initiated a sudden reversal downwards yesterday; this suggests that the downside momentum is picking up strength now.

Should the bearish break materialize, the index will likely head to the next base at the 3130 minor troughs.

On the upside, we still see the 3280 recent peak as the immediate obstacle, with the subsequent hurdle pegged at the 3320 support-turned-resistance.