Sunday, December 10, 2017

Dow - Possible turning point

Dow (24,329)

Another new closing record high for Dow on Friday. Looking at Dow's hourly chart, Dow opened with a gap on Monday morning, very likely, that is an exhaust gap.


There is a possibility that Dow might have ended its major wave and major wave 8 correction might have started. I expect Dow to pullback to 20,400 level for a 16.7% correction.


But if the major wave 7 has 9 waves, then the current correction could be a 5% sub-wave vi pullback to 23,270 level. After sub-wave vi, we still have sub-waves vii, viii and ix in front.


However if Dow continues to move higher to welcome 2018, then whether one likes it or not, Dow will continue with its bullish run as shown below. The next up is the minor minor wave iii of minor wave (iii).


FBMKLCI (1,721)

I expect KLCI to rebound to around 1,750 level to form its sub-wave ii of C. Be careful of the next drop, it can be quite damaging as it is the sub-wave iii of wave (iii) of C.


Berjaya Corporation Bhd. (Rm 0.355)

BJCorp has a bullish chart. It has completed its 7 long years of downtrend with a price-OBV divergence at the end of 2016. In November there was a bullish OBV short-term breakout before a price breakout. The current wave c of (ii) correction could be the last time BJCorp  goes to retest its 32 sens level.


Malayan United Industries Bhd (Rm 0.21)

Same as BJCorp, Mui is also forming the wave C of its major wave 2. It is likely to go to 15 sens or below.


Inari Amertron Bhd (Rm 3.22)

Inari has started to form the sub-wave ix of its wave (vii).


Insas Bhd (Rm 0.92)

If Insas can move higher from its current level, then we have a failure sub-wave v to complete the wave c of its wave (iv).


It is also possible that Insas may continue to go lower to have a 5-wave sub-wave v to complete the wave of (iv).



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