I always prefer to look at the Industrial Index that is more inline with the Dow rather than the Composite Index.
The Industrial Index dropped 64 points to 2,462 for a 2.5% drop. The major wave C that I have been talking about, is quite well behaved, I expect it to drop to at least 1,800 level before the end of 2012.
Kuala Lumpur Kepong
Kuala Lumpur Kepong has been holding up very well due to high CPO price. Today, it finally punched through its Rm20.20 neckline to form a very bearish 'Double-Top' reversal pattern to confirm the downtrend. The short wave 5 can be considered as a failure wave. It also marked the completion of the major wave (V).
Kuala Lumpur Kepong has been holding up very well due to high CPO price. Today, it finally punched through its Rm20.20 neckline to form a very bearish 'Double-Top' reversal pattern to confirm the downtrend. The short wave 5 can be considered as a failure wave. It also marked the completion of the major wave (V).
The mega wave (2) has started with a short-term minimum price target of Rm17.50, based on the 'Double-top' price projection.
If Dow's major wave C is heading for 5,000, I will expect the commodity prices to drop at a very fast pace, the price of CPO will drop in tandem with the Soybean price. KLK price may drop to the major wave (IV) level of Rm 7.00 as shown above.
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