Daily Markets Briefing: STI to open soft

Index closed largely unchanged at 3291.

IG Markets Singapore said:

Singapore’s STI remain resilient closed largely unchanged at 3291, we expect the STI to open soft this morning.

Meanwhile, OCBC Investment Research noted:

The sharp retreat by the European and US markets overnight is likely to spook the local bourse to a poor opening this morning.

And with the 2-week downtrend resistance still intact and the MACD still drifting lower at the moment, this suggests that the overall momentum is still more downside biased.

For now, we still see the immediate support at 3,265 (minor trough), followed by the subsequent base at the 3,240 key resistance-turned-support.

On the upside, the immediate resistance is now pegged at the 3,300 psychological hurdle and downtrend resistance, with the next obstacle marked at the 3,315 recent peak.