Daily Market Opinion for 20-Mar-2013
STI defied the regional market’s bearish sentiment yesterday by being able to rebound yesterday. STI opened with a gap up despite DJI’s negative closing on the previous night. Market participants seem to be supporting the support level of 3260 which is now holding STI up. The whole morning session seems to be on a buying spree as STI was pushed to as high as 3283 level before selling starts to set in during noontime. The buying pressure starts to cool off during the afternoon session and prices started to ease down. Eventually, STI close with 12.66pts up which ends at 3269 level. Last night, DJI closes only 3.76pts up as concerns from the Cyprus bailout continues. Will STI be able to sustain its rebound today to head back to its recent high? Or is yesterday’s price movement just a mere gap covering action?
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