Daily Market Opinion for 08-Jan-2013

STI failed to impress yesterday despite strong opening as profit takers capped the upside. The day started with a strong bullish opening as the market reacts to the positive closing by DJI on Friday night. STI was seen attempting to trade higher during the morning session, reaching as high as 3237 level before it failed to sustain. Sellers gradually entered the market before lunch hours which forced STI to enter the red territory. Further gains were lost nearing the closing hours as the market reacted to the weak European market opening. Eventually, STI ended with 6.96pts lower at 3218 level. Last night, DJI returned its previous session’s gains by closing 50.92pts lower. Has STI triggered off a bearish reversal yesterday? Or will STI stay supported and attempt to reach out for its resistance level again?

Black candle was formed in STI yesterday which ...