Daily Markets Briefing: STI up 0.5%

Another strong finish is unlikely today.

According to OCBC, the muted Wall Street close could inspire some profit-taking in the local bourse today, especially after the recent strong rebound – the STI was up 0.5% yesterday, adding to the previous session’s 1.2% surge.

Here's more from OCBC:

While the daily technical indicators look somewhat positive, the weekly and monthly indicators are still looking slightly bearish, suggesting that selling into strength may remain in play.

For now, the STI is likely to face stiff resistance at the psychological 3300 level (intraday high yesterday was 3295); it also needs to close above 3285 this week to retake the uptrend (since Oct’11) support-turned-resistance line.

On the downside, 3277 (61.8% retracement of the recent tumble from 3356 to 3149) is the immediate support, ahead of 3221 (38.2% retracement of 2953-3387 rally).