Daily Market Opinion for 08-Aug-2014

Further selling pressure was seen in STI yesterday as market participants continue to exit the market. STI opened slightly down and it starts to trade bearishly in the morning session. It hit a low of 3304 level and hovers around this level most of the day. It was before market closing time, bargain hunters started to enter the market, creating a rebound back towards the opening level. Hence, STI managed to close with just 6.01pts down despite facing strong selling pressure during the day. STI ended at 3314.22 level. Last night, DJI failed to rebound and continue to retreat lower by 75.07pts. Will STI be able to hold at its support level today? Or will it be attempting to slide much lower?

STI continues to form a hammer like candle yesterday. This time round, it failed to hold above its 20ma support ...