Dow - End of wave 2 of major wave (VII) ?

Dow closed its Monday session unchanged to form a Doji, which has the potential of developing into a "Morning Doji Star" reversal pattern. According to Bulkowski's ranking of 'Top 10 Reversal Pattern', this morning star pattern ranks No. 8 with 76% chances of reversal.

Courtesy of thepatternsite.com

To complete the "Morning Star" pattern, after the Doji on Monday, Dow must form a white (green) candlestick on Tuesday as shown above. With that formation, the Monday Doji marks the end of wave 2 of its major wave (VII).

However, Doji can be found on trend reversal but the appearance of a Doji doesn't mean the trend will reverse, it needs confirmation. Failure in confirmation a Doji is just a candle showing uncertainty. If Dow failed to form "Morning Star", it is crucial that it must remain above the lower resistance line as mentioned previously.

Latitude Tree Holding Bhd

Latitude Tree Holding Berhad is currently at the tail end of its major wave (II). The company is about to announce its 3rd Quarterly result. It has reported a 1st quarter earning of 17.20 sen and 2nd quarter earning of 17.63 sen, if its 3rd quarter earning can be maintained at 17 sen, it can achieve an annual earning of close to 70 sen per share. With a net assets per share of Rm2.95, its stock price at Rm 1.95 is ridiculously low. If its 3rd quarter result can be around 17 sen per share, I expect Latitude to begin its major wave (III).



Mitrajaya Holding Bhd
It appears to me that Mitrajaya has completed its wave 4.


It put on 9 sen to close at Rm 1.16, resting exactly below its upper resistance line. If it can open with a gap at the start of tomorrow trading session and can close with a positive candlestick, that will signal the starting of its wave 5.


Mtouche Technology Bhd
Mtouche looks interesting lately with the company's programme of buying back its own share. If my wave count is correct, a break above 29 sen with high volume will confirm the formation of wave (iii) of 3 of (III), a very dynamic wave.


Talam Corporation Bhd
Talam stock price after breaking its 'Double Bottom' neckline at 13.5 sen, it has moved back to touch its neckline again to form its sub-wave iv.
From its 1-year chart as shown below, it appears that sub-wave iv has been completed and sub-wave v has started.


Click here to read Citizen Nades A must read article.