Malaysian Ringgit continues to strengthen as the USD/MYR rate continues to drop after it has completed the wave ii of its wave C in November 2018. Hopefully wave iii can bring Ringgit to Rm3.50 to 1USD level.
Dow (25,106)
Dow continues to form the wave D of its major wave 8. I expect the wave D to end around 27,000 level. That is another 1,900 points or 7.5% to go. If wave E does not fall-short, it may go to as low as 21,000 level for a 6,000 point (-22%) drop. This is highly possibility unless the Dow does not stop at 27,000 level by punching through its ceiling and developing a new scenario.
FBMKLCI (1,686)
In tandem with the A-B-C-D-E formation of the Dow, KLCI is more likely to take the option of a mega wave (6) formation. KLCI is likely to form its wave iv of C when Dow is forming its wave D. And when Dow is going for its wave E formation, KLCI is likely to form its wave v of C.
Inari Amertron Bhd (Rm 1.62)
Inari is forming its wave B of (2) at the moment.
Insas Bhd (Rm 0.815)
I hope Insas can continue to move higher next week and can proceed to break the 92 sens level. Failure which I will have to switch back to the more bearish option that I have mentioned last week.
Pinehill Pacific Bhd (Rm 0.335)
From its high of Rm 2.75 in the year 2000, Pinepac dropped to a low of 14 sens in September 2018. From its low of 14 sens on 20 September 2018, it went limit up on 21 September at 44 sens after its announcement of a proposed land sale of 8,999.13 acres to United Plantation Bhd for a total cash consideration of Rm 413.57 millions. In the following trading day it went as high as 69 sens before closing the day at 54 sens.
Very conservatively if I less all of Pinepac's liability of Rm 288 million from the cash that it is going to received amounting to Rm 413.75 million, its net cash will be Rm 125.75 million. If I divide it by the total number of Pinepac shares of 150 million, it is about 84 sens a share.
After the land sale Pinepac still has 51,400 acres of land in Indonesia with 22,192 acres planted with oil palm.
If the 14 sens low in September 2018 is the end of its 18 years of consolidation, it is possible that the 54 sens closing price is the wave i of its new up-trend wave.
Since September 2018, Pinepac has completed a complex a-b-c-d-e wave ii correction. If it can start moving up from its Friday's closing price of 33.5 sens next week, it is possible that wave ii has ended and wave iii has just started. The main question now is how high it can go finally?
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