The market turned volatile during the week of June 27 to July 1, proving that the rebound a week earler was temporary.
The Straits Times Index ended the week at 3,095, losing all the gains it made in the week of June 20-24. The index has now moved marginally below the low of 3,098 it made in mid-June.
Based on the chart pattern, in early June, the STI broke below support at 3,160 or thereabouts. This level looks like the break of a neckline, with the chart pattern resembling a double top. The break below the neckline support indicates a downside objective of below 2,900, based on the chart pattern. Any rebound is likely to meet with resistance at 3,160.
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