Daily Market Opinion for 07-Mar-2013

A strong rebound was achieved by STI yesterday in reaction to DJI hitting historical high on the previous night. Market participants were confident that the current economic situation have stabilised and is ready for growth. The market opened with a gap up action around the 20ma resistance line at 3280 level. There were some initial struggles to break this resistance line but positiveness from the HSI market had encouraged buyers to enter the market to break this resistance. Once this resistance is being broken, STI was able to sustain above it during the afternoon session and eventually close at 3291 level. STI was recorded to have one of the strongest surge in a day for this year; 43.55pts up. Has STI’s downtrending movement been compromised after yesterday’s action? Is such rally sustainable?

STI formed a white candle with lower shadow yesterday. This candle has ...