Daily Market Opinion for 16-Aug-2012

STI failed to hold its bullishness yesterday as gloomy economic outlook plague the market. STI started the day by gapping down to 2078 level as Wilmar opened with a strong gap down in reaction to its poor earnings report. After opening, STI continues to slide down further as buyers were staying out of the market. STI hit as low as 3056 level during the lunch hours but it managed to rebound after lunch. The whole afternoon’s trading action was lacking of directions and remain flat. Even with negative opening from the European market, STI did not budge. Eventually, STI closed with 25.73pts lower, ending at 3062 level. Last night, DJI closed flat with 7.36pts lower as the US market experience a directionless day. Has STI’s uptrend momentum been compromised? Can STI retrace further?

STI closed with a black candle yesterday that can ...