Daily Markets Briefing: STI up 0.4%

But index's momentum has started to wane.

OCBC Investment Research noted:

The muted reactions on Wall Street overnight are unlikely to have much effect on the local bourse this morning.

Despite rebounding 0.4% yesterday, it seems that the STI’s recent recovery momentum has started to wane.

For now, the index is likely to continue its consolidation around current levels capped by the 3405 recent peak, with the subsequent obstacle marked at the 3485 historical key peak.

On the downside, the immediate support is pegged at the 3065 recent trough, followed by the next base at the 3330 key resistance-turned-support.

Meanwhile, CMC Markets Morning Comments noted:

In Singapore the STI put in another day of solid gains, but lacked the impressive display seen in the US on Friday or the fireworks seen further up the peninsula.

While we breached 3400 with relative ease last week it does seem likely to be the next resistance level, as local investors seem to have issues with round number boundaries from 3300 and higher.