Daily Market Opinion for 16-Nov-2012

Daily Market Opinion for 16-Nov-2012

STI suffered another round of selling pressure yesterday as concerns of “fiscal cliff” escalated while China changed its new leader. The day started with a gap down which confirms that 2980 support level has already broken. Selling pressure continued to after the gap down opening which coupled with attempts to rebound. However, sellers made use of the intraday rebound to push the price lower causing STI to hit as low as 2940 level before rebounding slight to close for the day. STI managed to close exactly at the support level of 2945 level and concluded the day with 32.11pts down. Last night, DJI struggled to rebound and it still ended with 28.57pts lower. Will STI be able to keep afloat at this support level? Where will the next support be if the support fails to hold?

STI performed a 2nd gap down …