Daily Markets Briefing: STI up 0.6%

A pullback is expected today.

According to OCBC, Caution could start to seep into the local bourse and see investors take some profit off the table, especially after yesterday’s 0.6% surge.

Here's more from OCBC:

We note that the Nikkei is also down 0.6% in early trade.

Nevertheless, the daily technical indicators remain positive, with the MACD and Stochastic still rising after their recent positive crossovers.

For now, the inability to clear 3353 (upper boundary resistance of the uptrend channel since 11 Aug) could send the index back towards 3323 (middle of Bollinger Band, also 30-DMA), which should hold up relatively well.

However, do be warned that there is a parabolic sell trigger around 3293, just ahead of the next support at 3284 (lower Bollinger Band, also 100-DMA).