EG Industries Bhd (Rm0.885)

EG moved up strongly today with impressive volume. Is this the starting of another bull run for this stock? or it is another 1-day affair in its side way consolidation?

Corrective wave is very difficult to count as it can take many forms. Looking at its longer term Chart, the 10-year chart, it is quite clear the next up-trend will be the major wave 5 and EG should reach at least its previous height (major wave 3) of Rm1.23.

The important question is whether EG has completed its major wave 4.

From its 1-year chart, one possible wave count is a abc-X-abc wave 4, and EG has completed its major wave 4 in October. Since then EG has completed its sub-wave i and ii and the current run-up is a possible sub-wave iii that I have been looking for since mid November.

Dow (19,863)

Dow gained about 20 points after 2 hours of trading on Monday morning.

It is possible that Dow has completed its mini wave 4 correction and has started its mini wave 5 of its wave (v). As I have explained previously, I expect the current major wave (7) to have 9 waves. Another word, the current up-trend is not expected to end at wave (v).

I expect the current wave (v) to move well above the 20,000 level which can be a solid support for its wave (vi) correction.

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