What to expect in 2016

In General

I expect the crude oil (WTI) price to bottom out at around US$27 a barrel before June. The Ringgit is expected to rebound in tandem with the crude oil price. I expect FBMKLCI continues to move higher ahead of that.

Crude Oil WTI (US$ 37.08)

Crude is at the tail end of its major wave 3. I expect the major wave 4 rebound during second quarter of 2016.

From the weekly chart, it appeared to me that the crude oil price has completed its sub-wave iii and has started to form its sub-wave iv. If sub-wave iv can end around US$40.00, sub-wave v is projected to drop another 33% to US$27.00 to complete the wave (v) and its major wave 3.

With that, the major wave 4 rebound is expected to bring the crude oil price to above US$60.00 before the assets bubble burst in 2017 and the major wave 5 is expected to bring the crude oil price to below US$20.00.

Dow (17,425)

I expect Dow to complete its major wave (7), (8) and (9) by 2017 before the bubble burst.

Dow has either completed its sub-wave iv and is forming its sub-wave v at this moment.

Or it has yet to complete its complex sub-wave iv.

FBMKLCI (1,692)

KLCI is expected to move higher in 2016 and to complete its major wave 5 in 2017. So far it has completed its wave (ii) and is forming the sub-wave i of its wave (iii).

Wave (iii) should be more dynamic and powerful than its wave (i).

EG Industries Bhd (Rm 1.10)

EG is either forming its wave (vi)

Or on a very bullish short-term view, it is forming its sub-wave iii of wave (v) depending on its direction of movement next week.

Emico Holdings Bhd (Rm 0.36)

Emico is likely to have completed its major wave 3 and is on its major wave 4.

But because of the huge volume for its wave (v), there is a possibility that the current correction is the wave (vi). The possibility of another powerful wave (vii) surge with high volume can not be ruled out.

Farms Best Bhd (Rm 0.65)

The powerful surge to form the sub-wave v signaled the completion of its mega wave (2). This 5 waves up indicates the starting of a new wave, the mega wave (3).

From the 10-year chart, one can see that its took Farms Best 7 years to complete its mega wave (2).

If Farms best can move up strongly in the next few days, it is possible that the last surge is the mini wave 1 of its sub-wave v.