Daily Market Opinion for 6-Aug-2012

STI form a year high yesterday after positive reports from the US & European markets. STI started with a strong gap up in the opening and attempted to trade higher. STI reached as high as 3086 level before sellers attempted to profit take. 3080 resistance level seems to be a strong resistance level which prevents STI from going higher. Before the market closing, more sellers came flooding into the market which caused STI to close at 3071 level eventually. STI was up 20.49pts for the day. Last night, DJI managed to close 21.34pts higher. Can STI break 3080 resistance level today? Or will the profit taking cause a retracement today?

STI closed with a black candle with upper shadow yesterday. This black candle indicates that STI is facing problem breaking the resistance level at 3080 level. However, the gap up motion yesterday also …