Daily Market Opinion for 02-Jul-2014

It was a bearish start for the month of July yesterday as market participants continued to take profit off the market again. 3255 support level failed to hold at the early hours of trade and selling pressure continues to set in throughout the day. During the day, STI hit as low as 3234 level before bargain hunters start to enter the market. The intraday rebound became sustainable and it helped STI to close at 3242.64 level. Hence, STI ended up closing with just 13.03pts down. Last night, DJI managed to stage a strong rebound of 129.47pts. Will STI be able to stage a strong rebound today or will it continue to head lower?

The key support level of 3255 level was being broken yesterday and this implies that STI is forming a downtrend movement. Hence, further downward pressure is expected to happen ...