Daily Market Opinion for 27-Mar-2014

After a day of consolidative movement, STI managed to show further bullish strength and break out of the strong resistance at 3120 level. Strong lead came from DJI’s previous night strong closing which helped STI to open with a gap up. Further bullish movement was being encouraged by HSI bullish opening which lead STI to test its resistance at 3120 level. It was then broken easily and STI stayed above the resistance level confidently without much selling pressure. This bullishness maintained throughout the day and it hit a high of 3149 level before profit takers enter the market. Eventually, STI managed to stay at 3143.32 level with 39.15pts up for the day. Last night, DJI lost 98.89pts. Will DJI’s bearish closing cause STI to start retracing? Or will STI ignore the bearishness and continue to propel higher?

With the breakout of 3120 ...