Straits Times Index - Head and Shoulders Formation

STI Head and Shoulders Pattern

As seem from the daily chart, the Straits Times Index is now forming the right shoulder and this is part of the Head and Shoulders reversal pattern. Until the neckline support is broken, the head and shoulders pattern is not yet complete. However, if the neckline support does break, the projected downside target is around 2290. This is a drop of over 350 points from the neckline!