Daily Markets Briefing: STI ended flat

Near-term pullback is looming.

According to OCBC, the local bourse is likely off to a pretty muted start this morning with Wall Street shut Fri, although Nikkei is up 0.1% in early trading.

Here's more from OCBC:

Meanwhile, the STI, which ended flat Fri, did not manage to clear the centre line of the Bollinger band at 3274, suggesting that a near-term pullback towards 3242 (lower Bollinger band) may be looming.

We note that the index may also be running out of steam ahead of the key test of the uptrend support-turned-resistance (since early Feb 2014) now sited at 3281.

But overall technical picture does not look overly bearish – daily MACD could be starting to turn up just below the centre line; daily RSI is hovering around 51%.

Furthermore, a parabolic sell signal will only be triggered around 3235.