Daily Market Opinion for 28-Sep-2012

STI rebounded strongly yesterday after a strong gap down on the previous day. This could be due to the strong support at 3040 level or it could be due to the gap covering of the gap resistance between 3052 – 3066 levels. STI opened slightly lower and continued to test 3040 support level during the early session. When HSI opened positively, buyers started to flock into the market and push the prices up. Buying pressure was seen throughout the rest of the day which pushes STI as high as 3066 level before sellers coming into the market. Eventually, STI closed at 3059 level with 12.75pts higher. Last night, DJI managed to climb 72.46pts and close at 13,485 level. Will STI be able to continue its rebound today? Or will the gap resistance prevent STI from going higher?

 

STI formed a long white …