Daily Market Opinion for 05-Aug-2014

STI started the week with a deep retracement action as market participants were rushing to take profits off the market. 3330 support level was broken easily during the morning action as the market took lead from the bearish US market closing last week. The selling pressure persisted throughout the day which led STI to reach as low as 3313 level. There wasn’t much short covering action as the end of the day and hence, STI ended at 3318.4 level. A total of 26.02pts was lost during the profit taking day. Last night, DJI managed to stage a rebound with 75.91pts up. Will STI be able rebound like DJI? Or will STI be finding its support level today?

As expected, STI had retraced further yesterday and thus, confirming the higher high formation. This retracement will likely to be a retracement for higher low ...