Am I a bull? Do I look like a bull?Continue from my post on March 26, where I mentioned that Asian Bourses with the exception of Singapore, other bourses such as that of China, Hong Kong and Kuala Lumpur most likely were in their respective new uptrend wave as long as they do not break their respective bottoms.
The wave count for Kuala Lumpur Composite Index is as shown above. From the peak, the first 3 waves down has to be wave A (Only wave A can take the form of 3 waves) which was followed by wave B with 7 mini sub-waves and finally wave C with 9 sub-waves. Sub-wave 9 is a failure wave with a low at 835 that is higher than that of sub-wave 7 at 829.
After setting a low of 835 in December, Composite Index (CI) has so far completed wave 1 and 2 and sub-waves i and ii of wave 3. The next wave is sub-wave iii of wave 3, normally iii of 3 is a powerful wave with high trading volume. If wave 3 is 1.618 times of wave 1(using fibonacci ratio), it will bring the index close to 1000. Let's watch for the next few days to confirm the iii of 3.If sub-wave iii is the same magnitude as sub-wave i, CI will reach 920. If iii is 1.618 times of i, CI will go until 953. Theoretically if iii is very very strong, its magnitude can be 2.618 times of i.
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