Daily Markets Briefing: STI down 0.6%

Index poised for a technical rebound.

OCBC Investment Research said:

The rebound by the US indices overnight is likely to cue the local bourse to a more optimistic opening this morning.

After sliding another 0.6% yesterday, the STI could be poised for a technical rebound soon. Despite this, we note that any rebound from here could potentially invite investors to sell into strength again thereafter.

For now, we pegged the immediate resistance at the 3300 psychological obstacle, with the next resistance at the 3320 support-turned-resistance.

On the downside, we now see the immediate base at the 3270 minor trough, followed by the next support at the 3240 key resistance-turned-support.