Daily Markets Briefing: STI up 0.54%

Expect more gains today.

According to OCBC, mixed closing on Wall Street overnight could give pause to the local bourse this morning, and even encourage profit-taking.

US stocks ended Monday’s session mostly lower as renewed weakness in energy shares weighed on Wall Street, OCBC said.

Here’s more from OCBC:

Although the STI ended 0.5% higher yesterday, it did not manage to sustain above the key 3100 level; we note that it has also formed another bearish candlestick by ending near the intraday low.

As such, another failure to retest the key 3100 hurdle could send it back towards 3049 (38.2% retracement of the fall from 3549 to 2740), breaking which, the next support at 3000 may be called into play.

Above 3100, we peg the next resistance at 3150.