Daily Market Opinion for 22-Aug-2012

STI started the week flat as the market continues to remain cautious after the long weekend. The day was started with slight gap down with multiple attempts to trade higher. However, whenever it trades higher, it faces profit-takers to prevent the price from going higher. Trading activity was weak during the day as many traders were not willing to commit new positions. Regional markets also showed lacklustre trading sentiment as they ended up flat too. Hence, STI ended the day lacking of clear direction with 3.66pts higher, closing at 3065 level. Last night, DJI managed a more deceives market action as it closed with 68.06pts lower. Will STI be trading sideways again today? Will DJI’s negative closing cause STI to retrace?

STI ended with a small white candle yesterday. This white candle shows that STI is refusing to trade lower yesterday but ...