Daily Market Opinion for 4-Sep-2012

Indecisiveness continues to plague the market again on the start of the week. STI opened slightly down but it was quick to recover quickly during the morning trade. The buying strength was gradual but lack of trading volume. The buying strength managed to push STI as high as 3028 level before selling pressure sets in. When the European market opened weak, traders were eager to exit the market in fear of more negative movements to happen. This resulted to STI’s negative closing for the day; STI closed at 3017 level with 8.24pts lower. Last night, DJI was closed for public holiday. Can STI continue to attempt to rebound today? Or will it try to test 3000 support level first?

A small white candle with upper shadow is seen yesterday. It can be read as a white inverted hammer pattern. This candle pattern indicates that …