Daily Market Opinion for 05-Feb-2013

STI managed to head higher yesterday and tested its immediate resistance level at 3315. STI opened with a gap up action and was able to maintain its buying momentum during the morning trading session. This helped STI to hit as high as 3319 level before it attracted sellers to sell on strength. Upon hitting the high, sellers dominated the market and gradually pushed STI lower. Returning the gains it had made in the morning trading session. Further selling pressure was seen before the closing hours which caused the gap to close within the day. Eventually, STI ended with merely 6.23pts higher despite its bullish start during the early hours. STI closed at 3297 level. Last night, DJI retreated with 129.71pts lower. Will STI start to retrace and form a higher high formation today? Or will STI attempt to test the resistance again?

STI ...