Daily Market Opinion for 05-June-2013

STI ended flat yesterday while it experienced a volatile day. STI opened with a strong gap down which attracted further selling pressure. This caused STI to hit as low as 3260 level before it attracted more bargain hunters into the market to start buying. Before lunch time, further buying pressure was seen and this slowly pushed STI back up to the opening level. Before closing, STI managed to hit as high as 3298 level before profit taking actions starts. Eventually, STI closes with only a mere 0.27pts up at 3291 level. Last night, DJI failed to continue its rebound and ended with 76.49pts lower. Will STI sustain its support level today after DJI’s negative closing? What will the worst case be for STI?

STI had an interesting day yesterday as it did managed to rebound back above its support level of 3280 even ...