Brace for a pullback today.
According to OCBC, despite the late rebound, the muted closings on Wall Street overnight could weigh further on local sentiment; the Nikkei is around 0.9% lower in early trade.
As previously noted, the ability of the STI to convincingly sustain above 2600 is key to a stronger rebound; while the index managed to hold above this level yesterday, it may attempt to test it again today.
Here’s more from OCBC:
If it does not hold, we see a risk of the STI slipping back towards 2521 for a start; but a much firmer support can only be found around 2424.
On the upside, we peg 2650 as the initial resistance ahead of the key 2700 level.
Do you know more about this story? Contact us anonymously through this link.