Daily Market Opinion for 18-Sep-2014

Tuesday seems to be an unnecessary panic selling as STI did not drop further yesterday. There was more clarity on the US interest rate hikes as the decision is to stay put currently. Therefore, STI rebound strongly yesterday by gapping up. 3285 support level was then regained during the early trading which gives a strong foundation for further rebound. However, during the day, the rebound faces the 100ma line at 3296 level which prevented STI from going higher. A high of 3299 was being made as an evidence of the resistance. Therefore, at the end of the day, STI closed at 3296.48 level with 23.86pts up. Last night, DJI traded 24.88pts higher. Will STI be able to retain the gains today?

STI’s rebound yesterday had helped to end the losing streak and could probably be forming a higher low formation. With the ...