Daily Markets Briefing: STI up 1.3%

Next obstacle pegged at 3130 mark.

OCBC Investment Research:

The more than 1% recovery on Wall Street overnight could provide further inspiration to the local bourse this morning.

After initiating a strong bullish break back above the 3070 immediate resistance yesterday with a 1.3% higher close, the STI looks poised to continue its climb towards the next obstacle at 3130.

Meanwhile, the upside momentum has also seen a significant improvement with the MACD having just initiated a sharp bullish crossover.

For now, 3070 has now become the newly established resistance-turned-support, with the next base lying at the 3000 key psychological support. Above the 3130 hurdle, the next resistance is pegged at the 3180 support-turned-resistance.