Brace for a pullback today.
According to OCBC, driven by the 7% surge by the Nikkei yesterday, the STI also staged a strong 2.7% rebound; but with the Nikkei currently down nearly 1% on profit-taking, we could also see the same here.
As before, the STI has yet to convincingly sustain above the key 2600 level yet; hence we are likely to see the index make a test of this level today, OCBC said.
Here's more from OCBC:
As long as 2600 does not hold, the STI could still be on its way back towards 2500 over the next couple of sessions.
And with the local banks due to report their results this week (UOB results out this morning, with net earnings down 1.2% at S$3.21b), the overall tone could remain somewhat cautious as well.
On the upside, we peg the next hurdle at 2650 ahead of the key 2700 resistance.
Do you know more about this story? Contact us anonymously through this link.