Daily Market Opinion for 01-Aug-2014

STI ended the month with strong bullish note as many speculated of the possibilities of window dressing action. STI started with a sheepish day as it opened flat. There wasn’t much market action during the early session as STI was facing resistance at 3365 level. But when the market decides to break 3365 resistance level, it came alive. Buyers were rushing into the market as if they were afraid of losing their opportunities. Hence, STI hit a high of 3387 level before profit takers entered the market. Eventually, STI closed strongly with 20.41pts up, ending at 3374.06 level. Last night, DJI suffered strong selling pressure with 317.06pts down. Will STI face strong bearish consequences today? Can it sustain its breakout?

STI ended with a long white candle with long upper shadow yesterday. This indicates that STI could have broken out of the ...