Daily Markets Briefing: STI to bounce back at the open

Immediate resistance still pegged at the 3330 key peak, says analyst.

IG Markets Singapore noted:

Singapore saw some selling before moving up before the close. Overnight we saw HSBC upgraded Singapore to overweight and with the global markets euphoria, we are likely to see the trickle-down effect onto Singapore and catching up this morning.

OCBC Investment Research said:

The rally by US indices to another new all-time high overnight is likely to boost local sentiments this morning.

And with the STI showing signs of forming a near-term bottom yesterday (close was also significantly off its intraday low), we could start to see a potential recovery in the days ahead.

For now, the immediate base remains at the 3280 resistance-turned-support. Below that, the subsequent base lies at the 3250 minor trough.

On the upside, the immediate resistance is still pegged at the 3330 key peak, followed by the subsequent resistance at the 3400 psychological hurdle.