Daily Market Opinion for 07-Aug-2014

It was another day of retreat for STI as it fails to continue its rebound. It started the day with a gap down action in reaction to the bearish US market closing. Selling pressure was gradual during the day while there wasn’t much volatility. A low of 3313 was tested before it started to rebound slightly. Before closing, STI was able to regain more strength to rebound and hence, able to close at 3320.23 level. It ended with just 7.44pts down. Last night, DJI closed flat with 13.87pts up. Will STI be able to stabilize this level today?  Or will it face more selling pressure?

STI formed a hammer like candle yesterday. This indicates that it is holding strongly at its 20ma support line and it refuses to break. Short-term indicators continue to swing on the bearish side yesterday and are ...