Daily Market Opinion for 19-Aug-2014

STI faced a selling day yesterday as market participants reacted to the Ukraine incident last Friday night. STI opened with a slightly lower and head towards its 50ma support level again. This MA support continues to hold well despite being broken slightly by hitting a low of 3298 level. It started to recover during lunch hours and head back to its previous closing. At the end of the day, STI closed at 3312.78 level with 1.98pts down. Last night, DJI rebounded strongly with 175.83pts up. Had STI completed its retracement movement yesterday? Will it attempt to head higher today after DJI’s positive lead?

The bearish attempt yesterday failed to materialise as the market underlying momentum is still a bullish one. Support by 50ma line at 3300 level is still holding strongly and it helps STI to maintain its possible higher low formation. ...