Wednesday, September 28, 2016

RCE Capital Bhd (Rm 1.32)

RCECap added 6 sens to close at Rm 1.32, two sens above its upper resistant line. If the breakout is genuine it will continue to pull away tomorrow. Very bullish.

But if it is a false breakout, then today's high is the end of mini wave 3 and it will likely to drop back to around Rm1.15 for its mini wave 4.

Monday, September 26, 2016

Dow - Two possibilities

Dow (18,094)

Dow dropped 166 points (-0.9%) on Monday. With these two red candlesticks, the previous 7-candlestick of advance has only 3 waves, it has to be a corrective wave instead of an advancing wave. It has to be wave d. The current down can be wave e of sub-wave ii.

However, with this a-b-c-d-e formation, the magnitude of sub-wave ii becomes rather big and is approaching the magnitude of wave (ii). There is this possibility that the a-b-c-d-e correction can be a higher degree wave (iv) correction.

From the longer term chart (8-year) it appeared to me that it is more likely to be wave (iv)

Major wave (7) is likely to have nine waves.  


Sunday, September 25, 2016

Weekly Update

Dow (18,261)

I expect Dow to move higher to complete its mini wave 1.

FBMKLCI (1,670)

KLCI is expected to move lower to complete its mini wave 5 of c of 4.

Felda Global Ventures Holding Bhd (Rm 2.41)

FGV has a 9 sens pullback on Friday. This can either be a small minor wave ii correction,

Or it can be a mini wave 4 correction if the correction continues for a week.

Insas Bhd (Rm 0.73)

The current correction for Insas can either be a minor wave vi if it lasts for another day or two,

Or it can be a higher degree mini wave 4 correction if it continues for one week plus.

RCE Capital Bhd (Rm 1.24)

I expect RCECap to move higher with improved volume to complete its minor wave iii.


Wednesday, September 21, 2016

FGV, EG, RCECap and Denko

Felda Global Ventures Holding Bhd (Rm 2.41)

FGV finally surged above the Rm 2.30 level today to start the mini wave 3 of its sub-wave v of wave (iii).

EG Industries Bhd (Rm 0.835)

I have two possible wave-counts for EG depending on whether it is going to shoot above the 90 sens level or to drop below the 82.5 sens level.

If EG goes below 82.5 level in the next few days as show below, very likely it will go below 75 sens for a bigger magnitude major wave 4.

It has a possible low of 65 sens, the top of major wave 1.

But if it can hold above the 82.5 sens level, has a rebound and can move above the 90 sens level, then the wave-count is as shown below.

 The next up will be the wave (iii) of its major wave 5.

RCE Capital Bhd (Rm 1.26)

RCE turned out to be more bullish than the two possible scenarios that I have mentioned in my article posted on 11th August. I was expecting a higher degree sub-wave i-a-b-c-ii formation, but today's candlestick showed that it is mini wave 1-2 and minor wave i-ii. The mid-August closing high of Rm1.16 is not sub-wave i, it is only mini wave 1.

The current run-up is minor wave iii of mini wave 3 of sub-wave i.

Very bullish in deed.

Denko Industrial Corporation (Rm 0.365)

One of my friend asked me, "how high the current sub-wave iii can go?"

Usually I use the magnitude of sub-wave i as a guide. Sub-wave i moved from 26 sens to 44.5 sens, the gain is 18.5 sens or +71%.

a) Minimum target is 32+18.5 = 50.5 sens

b) Another possible target is a gain of 71% = 32x1.71 = 54.5 sens

c) If sub-wave iii is longer than sub-wave i by fibonacci ratio of 1.618, then another possible target is 32 + 18x1.618 = 61 sens

d) If  iii is longer than i by fibonacci ratio of 2.618, then the target = 32 + 18x2.618 = 79 sens.

Please remember that this is only a guide. One must always watch out for failure waves. Chart reading is an art not hard science. One can never see the final wave form until it has happened.

"To buy is easy but to sell need great determination and discipline, especially in a down market."


Tuesday, September 20, 2016

Denko Industrial Corporation (Rm 0.345)

Denko added 2.5 sens (+7.8%) today with high volume. Very likely sub-wave iii has started.

From its longer term chart, and if I am right, the current up-leg is the sub-wave iii of its wave (iii) of its major wave 3 of its mega wave (3).

In my 30th July article, my wave count for Denko was slightly different. I need  to modify my wave count to take care of the 5 sens drop in August which was caused by the poor quarterly earning of 0.44 sen a share. Its previous  quarterly earning was 1.45 sens.

To find out more about Denko and its venture in Indonesia click 'Bonescythe-Denko' for the article written article by Bonescythe. Denko's future earning is expected to improve.

Jeff Ooi

IGP Khalid said Jelutong MP Jeff Ooi should surrender himself or face arrest for his allegedly offensive tweet on the death of PAS leader Haron Din.

What has Jeff tweeted ?

The answer : "Adios Haron Din. May there be peace"

This incident remind me of Langkawi MP Nawawi's remark on his Facebook page just hours after DAP's Chairman Karpal Singh was killed in a road accident.

His Facebook page featured a collage of Karpal Singh bloodied body, coupled with an old news report quoting him as saying that an Islamic State would only be possible "over my dead body". And right next to the collage he wrote, "would anyone like to take on Karpal Singh's challenge? Please give your name. Hehe". I can't remember whether there was any comment/action from IGP.


Monday, September 19, 2016

Insas Bhd (Rm 0.715)

Insas moved higher today to form its minor wave v of mini wave 3 of sub-wave i of its wave (iii).

From its 10-year chart Insas still has a long way to go to complete its wave (iii).


Saturday, September 17, 2016

Crude Oil WTI heading for US$36.00 a barrel

Crude Oil WTI (US$43.23)

Crude Oil (WTI) is forming its wave b of 4.

The current down trend is the mini wave 3 of iii of b. Hopefully wave b can end around US$36.00.

Dow (18,123)

Dow appeared to have completed its wave c of ii with 5 mini waves, unless wave c has 9 mini waves. I expect Dow to move higher to form its sub-wave iii.

FBMKLCI (1,652)

As I have explained in my previous posting, I have revised my wave count for KLCI based on the wave form of the Industrial Index.

KLCI is currently forming the last wave c of its major wave 4 that has an a-b-c-X-a-b-c formation.

Currently it is at its sub-wave iii of c of 4. Hopefully it can stop at 1,600 level.

Felda Global Ventures Holding Bhd (Rm 2.25)

Can FGV move above Rm 2.30 to start its mini wave 3 of v ? I am keeping my fingers crossed.


Thursday, September 15, 2016

Happy Mid-Autumn Festival

Wednesday, September 14, 2016

FBMKLCI - Revised wave count

FBMKLCI (1,661)

KLCI dropped 15 points to go below the crucial 1,670 level as well as the top of sub-wave i.

From the bottom in June there are only three waves up, it has to be a corrective wave. I need to go back to the long-term chart to recount the waves.

Mega waves (1)-(2)-(3)-(4) and major waves 1-2-3 can be maintained. Major wave 4 and waves (i)-(ii) need modification.

When I am in doubt, I always refer to the Industrial Index for confirmation.

Looking at the Industrial Index, there is a possibility that since the completion of major wave 3 in April 2015, the Industrial Index has not yet completed its major wave 4. The current downwards movement is possibly the wave (v) of c of 4.

Based on the above, I have revised my wave count for KLCI as shown below.

I shall take the current down as the wave c of 4. It may end somewhere near 1,550 level, another 110 points or 6.6% to go. If 1,600 can hold, then we will have an earlier rebound.


Tuesday, September 13, 2016

Dow - Jittery over interest rate and economic policy.

Dow (18,325)

Dow dropped sharply last Friday followed by a strong rebound on Monday. It appeared to me that it was forming the wave 3 and wave 4 of its wave c of its sub-wave ii.

Friday's drop was due to worry over possible interest rate hike in US and uncertainty in global monetary policy.

FBMKLCI (1,677)

KLCI is having its mini wave 2 correction with a possible 100% retracement to 1,670 level.

My wave count for Insas, FGV and EG remained the same as what I have written in my last posting.

Insas is forming the minor wave iv. Both FGV and EG are forming their respective mini wave 2.


Thursday, September 8, 2016

Insas, FGV and EG

Insas Bhd (Rm 0.705)

Insas added 5 sens (+7.6%) today with relatively high volume of 2.4 millions. It is the minor wave iii of mini wave 3 of sub-wave i of wave (iii).

From its 10-year chart. Insas is forming its major wave 5. I expect this major wave 5 to end in 2nd half of 2017.

Felda Global Ventures Holding Bhd (Rm 2.27)

If FGV can continue to move higher tomorrow, then the mini wave 3 of sub-wave v has started.

EG Industries Bhd (Rm 0.86)

EG continues to form its mini wave 2. Hopefully its mini wave 3 can start soon.


Tuesday, September 6, 2016

FBMKLCI - forming sub wave v

FBMKLCI (1,689)

KLCI gained about 18 points (+1%) in two days. It appeared to me that it has finally started its sub-wave v of its wave (iii).

If the magnitude of wave (iii) is the same as the magnitude for wave (i), very likely it will have 9 sub waves and is likely to end around 1,800 level.

From the 20-Year chart, I expect the major wave 5 to end by the second half of 2017.