Daily Market Opinion for 05-Feb-2014

It was another day of drop for STI as bearish sentiment continues to loom the market. With weak closing on the previous night, STI opened with a strong gap down action. This gap down sparked further selling pressure which pushed STI to as low as 2953 level. Bargain hunter, then, started to enter the market to grab hold of the panic situation. Buying strength was seen throughout the day as STI gradually recovers the lost points. The buying strength had even made STI to reach as high as 2973 level before easing to close at 2965.80 level. Despite the buying strength during the day, STI is still down by 25.15pts yesterday. Last night, DJI was able to recover 72.44pts. Will STI be able to recover its lost points today?

Yesterday’s gap down action had led STI to break its immediate support level ...