Daily Markets Briefing: STI up 0.4%

Expect more gains today.

According to OCBC, the rebound on Wall Street overnight could continue to boost local sentiment; although we do not rule out profit-taking should the STI again fail to clear the immediate downtrend hurdle at 3333.

Here's more from OCBC:

Note that the STI hit an intraday high of 3330 yesterday, but lost nearly half of earlier gains to close 0.4% higher.

Still, the near-term outlook remains quite positive, as the daily MACD has just cut up from inside the negative region; daily RSI continues to rise out of the oversold region.

Above 3333, we peg the next hurdle at 3357 (trough in mid Mar); 3291 remains the key support, ahead of 3267 (early Jan low).

We suspect traders will also look towards the Chinese bourses for cues, especially after the steep tumble last Friday (SSE Composite tanked 6.4%).