Daily Market Opinion for 12-Aug-2014

Rebound attempts were seen yesterday as the week starts after National Day. STI was able to recover most of its Friday’s losses by having a gap up opening. Strong buying strength was seen during the early trading session which helped STI to reach as high as 3316 level. But STI failed to sustain this rebound strength and started to retrace. Profit takers were seen exiting the market which caused STI to return close to its opening levels. Hence, STI closed at 3306.45 level yesterday with 17.56pts up. Last night, DJI was trading flat with just 16.05pts up. Will STI be able to continue its rebound attempt today? Or will the bearishness set in today?

STI’s attempt to rebound yesterday had shown that the support at 3280 level is holding strongly. Furthermore, the recovery to be above 50ma line and 3305 level is ...