Daily Market Opinion for 06-Aug-2014

STI outshine the regional market yesterday as it managed to recover part of its losses. In reaction to DJI’s previous night’s bullish closing, STI managed to open with a gap up action. A high of 3332 level was quickly reached but it was not sustainable. Bearish sentiment starts to set in again and push STI lower for the rest of the day. A low of 3319 level was reached in the mid afternoon before some buying actions starts to enter the market again. Eventually, STI was able to close at 3327.67pts with 9.27pts up. Last night, DJI was seen crashing down again with 139.81pts down. Will STI lose its bullishness and start retracing again?

The rebound yesterday had helped STI to close with a bullish reversal candle. Coupled with support from 20ma line, it is a good location for STI to form ...