Daily Market Opinion for 28-Aug-2014

Daily Market Opinion for 28-Aug-2014

At last, STI had gone against the odds and broke through the strong defence line at 3330 level. This breakout was achieved with a gap up opening which remained sustainable. There was some reluctance in going higher yesterday as STI retrace to a low of 3328 level yesterday. Market participants decided that push the market higher as M&A news of UE lifted the mood of the market up. This helped STI to find good reason to trade higher and hence, it helped STI to achieve a high of 3344 level yesterday. STI closed firmly at 3341.46 level with 18.44pts up. Last night, DJI was seen closing flat with 15.31pts up. Will STI ignore DJI’s movement and continue to head higher today? Or will the breakout turn out to be just an whipsaw action?

The breakout yesterday had failed the bearish signals from …