After reaching its high of around 1,520 in August 2014 and forming a double-top reversal pattern, the index has dropped to a low of 1,075 (-29%) by August 2015.
Within this 12 months of down trend, it has completed 5 waves, it is possible that the 1,075 low is the wave a of its major wave 2.
It is also possible that the index has taken another 8 months to form its wave (i)-(ii) and sub-wave i by April, 2016 (last month) and since then it is forming its sub-wave ii.
If my wave count is correct, property stocks is expected to move higher for about 8 to 12 months in tandem with the wave b of the property index, which is expected to gain about 25% in completing the wave b of its major wave 2.
Looking at the 20-year chart, wave c of 2 can bring the index to as low as 800 for a 40% drop. Houses should be quite cheap by then.
KSL Holdings Bhd (Rm 1.18)
KSL is in its major wave 4 correction. Watch out for the completion of its wave c of 4. Major wave 5 has a minimum target of Rm 2.35, which is top of major wave 3, to form a double-top reversal pattern.
However, if it can shoot over the top of its major wave 3 and go for a 230% gain, major wave 5 can go to as high as Rm 3.30 depending on the ending price of wave c of 4.
KSL Warrant-A will be expired by 18th August, 2016. Don't touch.
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