FBMKLCI (1,761) - Possible turning point

One possible reading for KLCI is that, it has completed a major turning point, the completion of its super wave I on April 19 at 1,895 level with a possible 'Double-Top' reversal pattern. We may witness a possible formation of 'Head and Shoulder' reversal pattern.

This is the most bearish scenario with a possible drop of 1,066 points (-56%).

If we are lucky, the current correction is only a wave (iv) pullback, we still have a wave (v) in front.

and of course, as I have mentioned before, if major wave 5 has nine waves, after completing the current wave (v), KLCI still need to complete its wave (vi), (vii), (viii) and (ix). That will give investors more time to liquidate and can get out at a higher index level but not necessary higher stock price level.

GE14 - Ayer Hitam Parliament Seat.

DAP's Liew Chin Tong has filed an election petition in the High Court in Johor Bahru to challenge the GE14 result for Ayer Hitam where he lost to MCA's Wee Ka Siong by 303 votes.

It would be interesting to have a by-election for Ayer Hitam to gauge the current feeling of the people towards the political development after the GE14.

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