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STI consolidates further
A big improvement awaits trader sentiment.
OCBC Investment Research said:
The rally on Wall Street overnight and the strong Nikkei start (up 1.2% now) are likely to inspire the local bourse to a significant recovery this morning.
As a recap, the STI continue to consolidate further yesterday; after a 0.1% higher opening, the index slipped to a 0.1% loss by the close.
But with today’s sentiments likely to see a big improvement, we could see the index heading straight for the 3180 support-turned-resistance.
Beyond that, the subsequent hurdle lies at the 3200 psychological resistance. On the downside, 3140 is still the immediate resistance-turned-support, with the next base marked at the 3110 key resistance-turned-support.
IG Markets Singapore meanwhile noted:
Turning back to look at the local market we are set to open slightly firmer once again, still bouncing around the 2012 highs.
While it is good to see consolidation at these levels, it is perhaps a little disappointing that we have not seen a little more momentum to push the STI on and test 3200. With the S&P500 adding over 2% so far this week we look at the STI significantly underperforming as it basically remains flat.
Perhaps when the US budget deal is finally secured we will see a little more convictions from investor’s locally and we will get a final push in the year-end rally.
At the open today we are pricing in around 0.5% gain for the STI.
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