Expect more gains today.
According to OCBC, further gains on Wall Street last Friday could continue to keep local sentiment fairly buoyant again this morning.
Here's more from OCBC:
However, further strong gains may be limited, given that the local bourse is about to show overbought signals; price action has also formed a potential toppish signal; the Nikkei has eased about 0.3% in early trade.
We further note that some of the blue chips are also showing similar toppish and overbought signals, suggesting that a technical correction may be imminent.
As such, we could see profit-taking emerging if the index fails to clear the next key hurdle at 2900; this could send the STI back towards 2800.
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