Expect muted gains today.
According to OCBC, the overnight plunge of >2% on Wall Street is likely to spook local sentiment, sending the STI back towards the next key 2600 support.
As previously warned, the overall tone continues to remain pretty bearish (even though the RSI is mired inside the oversold region) and the continued inability of the STI to sustain itself above 2700 does not bode well, OCBC said.
Here’s more from OCBC:
As such, investors should look to use any technical rebound to unwind stale longs or sell into strength.
While we peg the initial supports at 2680 and 2643, we believe that bargain hunting interest is only likely to emerge nearer to 2600, assuming this key support holds.
On the upside, 2700 remains the key hurdle, ahead of 2740.
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