Daily Market Opinion for 17-Aug-2012

Yesterday, STI closed flat despite attempts to test 3080 resistance during the day. STI started the day slightly higher and started to climb towards 3080 resistance level after bargain hunters entering the market. However, when the price reaches close to 3080 level, STI started tempering off. This happens after lunch hours when HSI turned negative and European market opened with a negative note. Participants of the market quickly switch from bullish sentiment to bearish sentiment during that period. Hence, STI returned back its intraday gains and close with only 0.78pts higher. STI remained at 3062 level. Last night, DJI closed with 85.33pts up. Will STI attempt to test 3080 resistance again? Has STI lost its bullish momentum?

 

STI closed with a doji with upper shadow yesterday. This doji indicates that the market is experiencing indecisiveness and coupled with the upper shadow, it …