Daily Market Opinion for 7-Nov-2013

It was the third consecutive flat closing for STI this week. Market participants continue to trade cautiously during this period while focus continues to turn to the penny stocks which enjoyed a rebound recently. STI was seen opening flat in the open in reaction to the flat closing by DJI on the previous night. There were attempts to rebound and retrace during the day but it was trading in a very tight range between the high of 3212 and low of 3199 levels. Trading volume remains average as most of the volume came from the penny stocks while the index’s volume was seen low. STI closed at 3205 level with only 0.25pts down. Last night, DJI managed to stage a good rebound with 128.66pts higher. Can STI rebound from its support level and head towards its resistance level today?

Another day of indecisive ...