Daily Market Opinion for 03-Sep-2013

STI started the month of September well as it opened with a positive note. STI reacted to positive China economic data and managed to achieve gains during the day. It first started the day with a slight gap up before buyers starting to enter the market. The buying strength was gradual but the market did not meet any strong selling action. However, trading activity was very low yesterday despite being able to climb during the day. With this kind of price action, STI was able to close at 3055 level and it gained 26.78pts during the day. Last night, DJI ended red with 30.64pts lower. Can STI sustain its rally? Or will STI continue to reach out for its resistance at 3080 level?

The rebound yesterday had failed the possible bearish reversal pattern as there was lack of bearish confirmation yesterday. STI’s positive ...