Daily Market Opinion for 04-Sep-2014

STI had managed to break the resistance level of 3330 level despite possibilities of it not being able to break it. This breakout action was driven by speculation that Russia might declare a cease fire on Ukraine. Therefore, STI reacted well during the opening session by breaking 3330 level. However, sceptics was seen pushing STI down to a low of 3326 level before STI rebound back and climb higher. A high of 3349 level was reached and STI maintained at that level well. It closed at 3348.77 level with 20.47pts gained. Last night, DJI did not manage to show any strong gains by closing with only 10.72pts up. Will STI be able to continue its bullish streak today? Or will STI start to retrace and test the breakout level today?

Yesterday’s breakout movement had confirmed STI’s bullish reversal pattern and could have ...