Daily Markets Briefing: STI up 0.1%

Index likely to consolidate around current levels.

According to OCBC Investment Research:

The muted reactions on Wall Street overnight could keep local sentiment cautious this morning.

And with the STI showing another lackluster display yesterday with just a 0.1% gain, we could continue to see it consolidating around current levels today.

Meanwhile, the daily MACD indicator is already converging bearishly towards the signal line; this suggests that the index’s upside momentum is waning.

For now, we still see the immediate resistance at the 3485 peak, followed by the 3500 psychological hurdle.

On the downside, the immediate support is pegged at the 3425 recent trough, with the subsequent base lying at the 3405 key resistance-turned-support.