Daily Market Opinion for 03-May-2013

Daily Market Opinion for 03-May-2013

STI burst upwards like a rocket yesterday after speculations on the earnings announcement of Dbs, Uob and Genting Sp. The opening started with a gap up yesterday that retested the resistance at 3370 level. During the mid of morning session, STI started to trade higher than 3370 resistance level despite regional market trading in the negative region. Buying interest started to enter into both Dbs and Genting share which lifted STI up. Very soon STI was able to stay above 3370 level and continues to head higher towards 3400 level. At the end of the day, STI managed to close at 3402.39 level with 34.21pts higher. Last night, DJI close with 130.63pts higher. Will STI continue to trade higher today? Has STI rallied too much yesterday?

STI exceeded my expectation of retracement yesterday as it broke 3370 resistance level. This means that …