Daily Markets Briefing: STI down 0.5%

Just another pull back.

According to OCBC, it's likely another dull day for the local bourse, despite the modest gains on Wall Street overnight and a similar Nikkei start (up 0.3%).

Here's more from OCBC:

With the STI pulling back another 0.5% yesterday, it is now set to initiate a test at its 1-month uptrend support; that is also where the 3200 immediate psychological support is located.

Meanwhile, the MACD has started to show signs of moderating its ascent just below the centerline, this suggests that near term upside momentum could be tapering off at the moment.

Beyond the 3200 initial base, the subsequent support lies at the 3130 minor troughs. On the upside, 3265 recent peak is still the immediate hurdle to overcome, followed by the next obstacle at the 3320 key support-turned-resistance.