Daily Markets Briefing: STI down 1.4%

Analyst predicts a short-term technical rebound today.

OCBC Investment Research said:

With US indices rebounding overnight and the Nikkei having a more optimistic start (up 0.5% now), this could offer some relief to the local bourse this morning.

And with the STI now hovering just above its near 2-year key uptrend support after yesterday’s 1.4% sell-off; we could potentially see a short term technical rebound coming in today.

But any rebound from here could invite selling pressure again as the STI recovers towards the 3180 region (3-month downtrend resistance).

3210 key support-turned-resistance is the next level of hurdle to overcome. On the downside, 3120 is the immediate support, with the subsequent base lying at the 3070 key trough.