Markets Briefing: STI up 0.2%

The index is likely to remain locked in a tight trading range.

IG Markets Singapore noted:

In Singapore, the STI lifted 0.2% yesterday to move up to 3288 as it again flirts with the 3300 level.

This morning we are pricing another flat open for the local blue chip index.

Meanwhile, OCBC Investment Research said:

With Wall Street closed overnight, the STI is likely to remain locked in a tight trading range again today.

While the STI added 0.2% yesterday, the daily indicators suggest that the market still looks slightly overbought and a technical pullback may be in the making.

For a start, we could see the STI easing to 3258 (38.2% retracement of the 3160-3319 rally), while a larger pullback could bring the index back to 3171 (38.2% retracement of the 2931-3319 rally).

On the upside, 3300 remains the initial hurdle, ahead of 3319.