Daily Market Opinion for 28-May-2013

Daily Market Opinion for 28-May-2013

STI experienced a cautious day yesterday as market participants were fearful of what happened on last Thursday. It opened with a slight gap down as the Japan market was trading bearishly. So after HSI opened with a positive note, STI was able to recover and attempt its rebound. However, its rebound failed to materialise as the support turned resistance level at 3400 is preventing STI from getting higher. Selling pressure sets in again after lunchtime and this caused STI to hit as low as 3373 level. But bargain hunters entered the market again to push STI back up to its opening levels. Eventually, STI closed with 1.87pts down, at 3391 level. Will STI attempt to rebound today again? Have the downside ended after yesterday’s movement?

STI formed a white long legged doji like candle yesterday. This candle shows indecisiveness in the market after strong …