Singapore Markets Morning Briefing - what you need to know for Tue Jan 17, 2012

Positive start in Japan trading could bring good news to Singapore.

OCBC Investment Research said:

With Wall Street closed for public holiday overnight, the positive Nikkei start (+0.5%) could provide a positive influence on the local bourse this morning.

As a recap, the STI slipped to a 1.3% loss yesterday following a 0.7% lower opening; this likely a technical correction as the index has rallied very strongly in the past week.

For now, 2735 (minor resistance-turned-support and 100-DMA) remains a fairly strong immediate support for the index in the event of further decline in the days ahead.

Below that, we still see the subsequent support at 2683 (minor resistance-turned-support). On the upside, the immediate obstacle is still at the 2793 key resistance (Dec ’11 high), with the next resistance lying just nearby at 2800 (psychological resistance).