Sunday, February 28, 2016

Weekly Update

Crude Oil WTI (US$ 32.86 a barrel)

Mini wave 4 continues with its journey. Expected to end at US$38.00 within the next 5 to 6 weeks before mid April. Watch out for the last mini wave 5 plunge to below US$25.00 a barrel.


Dow (16,639)

Dow is forming the mini wave 3 of its sub-wave i. I expect its sub-wave ii to move in tandem with crude oil's mini wave 5. If crude oil price were to go below US$ 25 in its mini wave 5, the sub-wave ii of Dow might go for a 100% retracement to the starting point of its sub-wave i at 15,660.



FBMKLCI (1,663)

KLCI continues to complete its sub-wave i. Currently KLCI is either forming its mini wave 4, a more likely scenario.


Or it is a more bullish but less likely possibility as shown below. The current correction is the minor wave ii of its mini wave 3. For this scenario, KLCI needs a powerful minor wave iii surge next week. Failure which, this scenario is out.


Pan Malaysia Corporation Bhd (Rm 0.27)

I have overlooked a small mini wave 1-2 at the starting of sub-wave v. A costly mistake.  So, wave (iii) has ended and wave (iv) in progress.


Need to wait for wave (v) in order to feel good again.



Farms Best Bhd (Rm 0.77)

Farmbes reported a very bad quarterly loss of 16.86 sens a share on Wednesday after the market has closed. But surprisingly its prices held very well in the next two trading days, but technically it has to be that way as it is on its way to complete its sub-wave ix.



Earlier on 15th February, Farmbes has announced that it has received a 'Letter of Intent' from CAB Cakaran to purchase assets (28 Broiler Farms, 6 Breeder Farms, 7 Depots and 1 Poultry Processing Plant) at a purchase consideration of up to Rm 242 million. It also mentioned that the total book value for the assets is about Rm 93 million. The extraordinary gain at the conclusion of the S&P will be Rm 149 million. If we divide Rm 149 million by its number of share of 61 million, it is Rm 2.44 a share. Farmbes also mentioned that its current bank borrowing is Rm 250 million.

EG Industries Bhd (Rm 0.89)

The rebound after its 5-wave down has ended.


From its 10-Year chart, it is possible that EG has completed its major wave 3 and is currently forming its major wave 4.


From its 5-Year chart, EG took 14 months to complete its major wave 2. Major wave 3 ended in early January, this is only the second month of its correction, still a long way to go to complete its major wave 4. Very likely the current down trend is the wave a of 4. The next rebound is likely to be the wave b of 4.


EG has reported an impressive good earning of 4.57 sens a share. Please refer to its Friday's press release titled 'EG Industries Core Net Profit Rises 5 times in 2Q16'. Click to read.

Same old words, 'In stock, anything can happen', if 'they' decided to push all the way up, then we will have the following wave count. wave (i), (ii) and (iii) of major wave 3, where wave 3 has not yet ended !!!



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