STI +14 close at 3094, resistant will be at 3120 and if break above this level we will see more upside. However if it fail to stay above 3120 then the rebound is not sustainable and traders must remain cautious! First support will be at 3060, follow by the 3000.
Why we said any good buying opportunity would be when the STI reaches around 3000 & 2980? First if ST break below 3060(the 200ma) there will probably be a heavy sell down to the next support level which is likely to be 3000 & 2980. Second US market has been very bullish since Dec last year without significant pullback, if it does pullback it will definitely affect regional market, thus STI breaking below 3060 may be possible. If market sentiments continue to be bad, short the property counters!
Good stocks to look at if market turns around: Kep Corp, SGX, CoscoCorp, SembCorp, Sembmar, NOL, Noble Grp... if you want diversification, can look at STI etf
