Daily Market Opinion for 05-Sep-2013

Daily Market Opinion for 05-Sep-2013

It was another day of selloff for STI as concerns of the Syrian war plague the market again. STI opened with a gap down action in the morning and it did not manage to stage any rebound. The selling pressure slowly enters the market during the day which kept buyers from entering the market to support the price. Trading action remains flat during the day but more selling activities started before market closing hours. Eventually, STI closed with 39.36pts down and ended at 3015 level. Trading volume had started to increase slightly after the bearish reaction. Last night, DJI managed to recover 96.91pts. Can STI also recover its lost grounds today? Or will selling pressure continue today?

STI closed with a long black candle yesterday which indicates a decisive bearish movement. A gap resistance between 3041 – 3049 levels was being created yesterday. …