Daily Market Opinion for 10-Aug-2012

On Wednesday, STI was seen retracing further as traders unload their position for the national day holiday. STI started flat during the opening and did attempt to climb higher but sellers were waiting there. Further selling started when HSI opened and participant of the market became concern of the weak economic data from China. Selling pressure was seen for the rest of the day while some short covering was seen before market closing. STI ended with 15.49pts down at 3052 level. For the past 2 nights, DJI was trading flat with 7.04pts up and 10.45pts down for the respective days. How will STI react after the national day holiday? Is STI going to retrace further?

STI closed with a long black candle on Wednesday. This black candle had broken STI’s gap support level between 3056 – 3069 levels. Hence, this indicates ...