Thursday, February 16, 2017

EG and Insas

EG Industries Bhd (Rm 0.93)

EG dropped 4 sens after its announcement on its proposal of 1 for 4 right issue of Redeemable Convertible Preference Share (RCPS) and 1 bonus share for every RCPS subscribed.

Today's drop is likely to be its mini wave 4. Very likely its share price will move sideways to form its mini wave 5 to complete its sub wave iii, follows by wave a-b-c of its sub-wave iv in the next 2 to 3 months.




Insas Bhd (Rm 0.825)

In longer term chart, we can see that Insas is forming its major wave 3


Insas has started its correction in the last 3 trading sessions. It dropped another 3 sens today. If it can start to move higher again tomorrow, then this current pullback is its mini wave 6 correction and its sub-wave iii has 9 mini waves.


But if Insas continues to move lower in the next few days, then its sub-wave iii has only 5 mini waves and has ended. The current correction becomes a higher degree sub wave iv correction.


There is another possibility that the current correction is an even higher degree wave (iv) correction. At this moment I feel that this option is not that likely.



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