I would like to assume that major wave (6) for Dow has ended and Dow will be forming its major wave (7) from now until mid 2016, at least.
The current pullback is the sub-wave ii of wave (i) of (7).
FBMKLCI (1,589)
For KLCI, I hope I am right in assuming that major wave 4 has been completed and major wave 5 has started.
It is possible that KLCI is forming its mini wave 2 of sub-wave i of wave (i) of major wave 5. Mini wave 2 may go for 100% retracement but it should not go below its previous closing low of 1,532.
Signature International Bhd (Rm 1.88)
Someone has asked for my comment on this stock. Frankly speaking, I don't really want to touch this stock after its last quarterly earning announcement of 3.2 sens a share, a 71% drop from its previous earning of 11.2 sens with a corresponding drop in its quarterly revenue from Rm 87.5 million to Rm 55 million. Net assets per share is Rm 1.23.
Technically there are two possible wave counts. Under the first scenario, the current correction can be wave 4 with a possible 5 in front. Its OBV indicates distribution and its sub-wave (iii) is the shortest, not that right. Its latest earning of 3.2 sens does not support this wave count.
The second possible wave count is rather bearish, it has completed its major wave (1) and it is forming its major wave (2) at this moment with Rm 1.60 as its first target.
The next quarterly earning is crucial, anything that is less than 3 sens a share means - Game Over. Stock price will either move side way or move within a down-trend channel.
This is only my personal opinion and as I have always mentioned, I can be wrong.
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