Daily Market Opinion for 10-Sep-2014

STI managed to halt its decline by rebounding yesterday despite lacking of trading volume. STI opened low with attempt to test 3330 support level but it did not test it. Instead, it rebounded right after opening. The rebound was sustainable during the day and even reached a high of 3350 level before selling pressure starts to set in. Profit taking was seen close to the end of the day. Hence, STI closes at 3342.96 level with only 7.77pts up. Last night, DJI retreated 97.55pts. Will STI be able to maintain its gains today or will it react to the bearishness of DJI today?

STI’s attempt to rebound yesterday could be premature as it did not consolidate firmly at 3330 support level yesterday. Its upper shadow formation in the candle indicates that STI might not be ready to continue to trade higher yet. ...