Expect muted gains today.
According to OCBC, the >2% tumble on Wall Street last Friday night is likely to weigh heavily on the local sentiment this morning, pushing the STI ever closer to the key 2600 level.
Here’s more from OCBC:
Although the STI is already been oversold for the past week, the daily MACD suggests that the tone remains very negative.
As such, selling into strength or unwinding stale longs could remain the focus for now; this as a break of 2600 could see more capitulation and swiftly bring the next support at 2521 into play.
On the upside, we peg the initial resistance at 2640, then 2680, ahead of the key 2700 hurdle.
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