Daily Markets Briefing: STI up 0.37%

Brace for a pullback today.

According to OCBC, the pullback on Wall Street overnight could see the local bourse doing likewise, especially after the STI’s good run of gains over the past week or so.

Here’s more from OCBC:

Besides the usual profit-taking ahead of the weekend, we note that the daily RSI has entered into the overbought region; hence the market may be due for a pause and some consolidation before heading higher again.

As before, the medium-term picture remains relatively upbeat, as the 50-DMA has recently cut up on the 100-DMA; the 100-DMA support also appears to be holding up after a recent test.

For now, we peg the initial support at 2950, ahead of 2919 (38.2% retracement of plunge from 3549 to 2528); initial hurdle remains at 2980, while key remains at 3000.