Daily Market Opinion for 5-Sep-2012

Yet again, STI failed to show bullish strength yesterday despite attempts to rebound. STI opened with a gap up but it is lacking of leads from DJI on the previous night. Buying strength was muted in the day as traders remain cautious on the long side which resulted in drop in prices during the day. Trading volume was also lacking which resulted in a day of little trading activities. Eventually, the selling strength prevails and caused STI to drop 5.67pts for the day. STI ended at 3011 level. Last night, DJI market opened after the break with 54.90pts down. Has STI finished its rebound? Will STI break its support level today?

 

Black candle was formed in STI yesterday. This black candle failed the inverted hammer pattern on the previous day which indicated that STI is still not ready to rebound. The short-term …