Daily Market Opinion for 5-Oct-2012

Yesterday, STI went ahead to attempt to break 3080 level yesterday and it could have been successful breaking it. STI managed to close slightly higher than 3080 resistance level at 3086 level with 9.5pts up yesterday. However, this closing did not close higher than the recent high level of 3088 and furthermore, the traded volume yesterday was not significantly high. The opened with a slight gap up and faced sellers at 3080 level which forced it to retrace in the early trading session. However, the bullish buyers continue to push the price higher for the rest of the day with anticipation for good announcement from the ECB. After market closing, ECB announced to maintain its low interest rate and its commitment to starting buying bonds from the market. This announcement boosted the US market which caused DJI to close with 80.75pts higher. The ...