Dow - How high it can go

Dow (29,348)

Dow is on the major wave 9 of its mega wave VII. If this mega wave VII has only nine major waves, the next pullback will be the mega wave VIII correction, a more than 50% correction to a possible low of 18,000 level.

By assuming the major wave 9 to have the same magnitude as that of the major wave 7 of around +70%, major wave 9 is likely to end at around 37,000 level.

A crucial question here is whether the mega wave VII is going to have only nine major waves or it is going to have more than nine major waves. If it is going to have more than nine major wave than the correction after major wave 9 is a 15% major wave 10 correction to be followed by major wave 11, 12 and 13 to reach another possible ending point for the mega wave VII at the end of major wave 13.

FBMKLCI (1,588)

My reading for FBMKLCI remained the same as what I have mentioned in my previous posting. KLCI is not yet ready for a bull run, it needs time to finish the wave C of its mega wave (6) before starting its mega wave (7) bull run. KLCI will be lagging behind the Dow and the rest of the markets. Do remember, KLCI is the only market ended in red in 2019.

Advance Synergy Bhd (Rm 0.155)

ASB reached an intra-day high of 17.5 sens before ending the day at 15.5 sens with very high volume of 41.3 million shares traded.

From its 20-year chart, ASB has its bottom in 2008. Since then, it has so far completed its mega wave (1)-(2), its major wave 1-2 and its wave (i)-(ii). The next run-up is likely to be the major wave 3 of its mega wave (3).

Today's surge with high volume accompanied by an OBV breakout is likely to be the sub-wave iii of wave (iii) of major wave 3 of of mega wave (3)

It is very unlikely that ASB were to drop back to 12 sens again, it is more likely to continue to move higher in the coming weeks. But in case, due to some reason, ASB does moving lower again to retest the 12 sens level, the only explanation I can offer is an a-b-c wave (ii) formation. But it is very rare to have such a high volume for wave b.

ASB announced on 8 November 2019 that the proposed disposal of a piece of property in Daerah Petaling for Rm124 million was completed.

Fintec Global Bhd (Rm0.05)

The most valuable asset of Fintec at this moment is his holding of 511.84 million shares of Focus Dynamics Group Bhd that has a market value of Rm335 million or 44.7 sens for each Fintec share. At 5 sens, Fintec's market capitalization is only Rm37 million. Looking at Focus 14-Year chart, it is currently forming the wave (iii) of its major wave 3 of its mega wave (3), it is expected to move higher to complete its wave (iii) soon before its wave (iv) correction.

Fintec's chart is less bullish despite of its strong assets. It has to move lower to complete the wave (v) of C of (2) before starting its mega wave (3).

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