Daily Market Opinion for 18-Oct-2012

Yet another round of attempt by STI to break the gap resistance level which did not turn out fruitful yesterday. STI first gapped up strongly during the opening and reached as high as 3066 level before the sellers started to resistance the price. The 20ma resistance line at 3064 level held very well. Sellers gradually pushed the price lower while buyers got really cautious during the day. Hence, STI slide from its opening throughout the rest of the day despite the rest of the Asian market showing bullishness. Eventually, STI ended 1.14pts down during closing which lead STI to be trading below the 50ma line again. STI closed at 3045 level. Last night, DJI struggled to continue its rally and ended flat with only 5.22pts higher. With STI showing resistance for 2 days, will STI start its retracement today? Or will STI continue ...