Daily Market Opinion for 30-Aug-2012

Yesterday was another quiet day for STI as traders continues to be cautious. STI opened slightly higher during the day and did attempt to trade higher. However, buying strength was not sustainable as there are still sellers waiting above to sell. Reaching only as high as 3054 level, the sellers prevented the market from rising and instead forcing the price back to the opening level. Eventually, STI close with a mere 1.5pts higher at 3041 level. Last night, DJI also ended flat with only 4.49pts higher. How long will this sideways movement continue?

 

Yet again, a doji with upper shadow was formed yesterday. 2 consecutive days of such candles indicates that STI is still facing resistance from the 20ma line. As the 20ma resistance line is holding, the underlying momentum could still be bearish. Based on the indicators, the signs were still …