Daily Market Opinion for 10-Jul-2014

STI continue to weaken further in reaction to DJI’s weak closing. 3280 was being threatened to be broken during the opening session. STI attempted to rebound during the early session but it failed to go beyond a high of 3284 level. Sellers then entered the market to push STI below 3280 level and dropped gradually. Soon a low of 3264 level was formed and it attracted bargain hunters into the market. The bargain hunters supported the market and push STI back above 3270 before closing. Hence, STI ended the day at 3275.46 level with 7.88pts down. Last night, DJI recovered 78.99pts. Will STI be able to recover its lost grounds too?

STI is currently experience retracement movements as it confirmed its bearish harami pattern. This might lead to further downside action as it also confirms bearish signals in the indicators. However, as ...