Ron95 - Price likely to go up

In the previous week the price of crude oil WTI opened the week at US$50.60 a barrel. It moved to a high of US$52.00 and dropped to a low of US$48.18 before closing the week at US$49.80. The average price for the week is higher. Very likely the petrol prices are going to move higher again.

The best we can hope for is - prices remain the same.

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Dow - Sub-wave v is likely to have 5 mini waves

Dow (21,080)

After reaching its current level, it looks like Dow is continuing with its mini wave 3, 4 and 5.

FBMKLCI (1,772)

In tandem with the Dow, KLCI is going to form its mini wave 3, 4 and 5.

Insas Bhd (Rm 0.965)

Insas announced a quarterly earning of 9.99 sens a share on Wednesday with net assets at Rm 2.30 a share. Its share price went to as high as Rm 1.02 on Thursday morning. Insas recorded a volume of 39 millions share at the close on Thursday but it formed a reversal 'Long-legged Doji' signalling the completion of mini wave 3. Mini wave 4 started on Friday with 2.5 sens drop.

From its quarterly financial report, one will notice that 80% (Rm 57 millions) of its pre-tax profit of Rm 68 millions is from 'Other income - Note 2'

'Note 2' shows that Rm 12 millions is from 'Exchange gain', Rm 22 millions is from 'Fair Value Gain on financial assets' and another Rm 9 millions from disposal of shares in associate companies.

Its actual earning from its current business operation is rather miserable.

But from its long-term chart, Insas is on its mega wave (5).

Minimum target is a 'double-top' formation of Rm 1.30. Maximum target is Rm 1.80 by assuming another 200% gain for the mega wave (5).

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Ron95 - Price to go higher

Crude oil (WTI) price has moved up from US$47.84 a barrel to US$50.33 a barrel during the previous week. Petrol prices are expected to go higher in the coming Wednesday fuel price announcement.

Weekly Update

Dow (20,804)

My reading for Dow remained the same. Dow is either on its way to complete its mini wave 3, 4 and 5 of its sub-wave v of wave (v) of major wave 7.

Or Dow has already completed its wave (v) with a failure sub-wave v. This is a bearish option with Dow currently forming its major wave 8 with a possible 15% correction.

FBMKLCI (1,768)

Depending on Dow's direction, KLCI is either on its way to complete its mini wave 3, 4 and 5

Or on its way to complete its mini wave 5

Or it has already completed its wave B in early March and is moving south to complete its wave C.

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Dow - Be careful

Dow (20,606)

Dow dropped sharply on Wednesday. It dropped 372 points (-1.78%) at the close of the trading session.

I have mentioned in my May 14's article that I cannot rule out the possibility that Dow might have completed its wave (v) with a failure sub-wave v. With this 372 points drop, this possibility is only 200 points away. Once the Dow punched through the 20400 level, my reading is - it will drop another 2,400 points to 18,000 level.

And of course if it can hold above the 20400 level, it is still possible that this sharp drop is the mini wave 2 of its sub-wave v.

Keep your fingers crossed.

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Ron 95 - Fill up your fuel tank by Wednesday

Petrol prices are expected to go up in the coming Wednesday's announcement. Looking at the crude oil chart (WTI), the previous week candlestick has shown that the crude oil price (WTI) has gone up from US$46.22 a barrel to US$47.84 a barrel.

Very likely the government is going to announce higher petrol prices.

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Going South ?

Crude Oil WTI (US$ 47.88)

At this moment there is this possibility that crude oil price has completed its wave (iv) of C and has started its wave (v) of C.

No panic selling yet, has to wait until it punches through the US$ 39.19 level and the market turns bearish.

Dow (20,896)

As I have mentioned previously, it is possible that Dow is forming its mini wave 2 at this moment and there are mini wave 3, 4 and 5 in front.

But I cannot rule out the possibility that Dow might have completed its wave (v) with a failure sub-wave v.

Be careful, be very careful of the possible 15% major wave 8 correction.

FBMKLCI (1,775)

If Dow can proceed to form its mini wave 3, 4 and 5, I expect KLCI to move in tandem with Dow in forming its own mini wave 3, 4 and 5.

However, if Dow has already completed its major wave 7 with a failure sub-wave v, it is possible that KLCI has also completed its wave (iii) of B and has started to form the wave C of its major wave (6).

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Ron95 - Price to drop further

In the previous two weeks, Ron95 dropped from its high of Rm 2.27 a litre to Rm 2.21 and to Rm 2.11 in last Wednesday's announcement.

Looking at the previous week's weekly candlestick, crude oil price dropped from US$49.33 a barrel to US$46.22. In the coming Wednesday's announcement, petrol prices are expected to go lower.

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Crude Oil - Heading for US$25 a barrel

Crude Oil WTI (US$ 46.51)

Very likely crude oil has completed its wave (iv) of C. Wave (v) is likely to end at US$ 25.00 or below. It is going to hurt oil producing countries badly. Malaysia is one of them.

Dow (21,006)

If well behaved, Dow will proceed to form its mini wave 3, 4 and 5, unless it has a failure sub-wave v with mini wave 5 missing, highly possible for the terminal mini wave.

FBMKLCI (1,762)

In tandem with Dow, KLCI is likely to proceed with its mini wave 3, 4 and 5 with possibility of a failure sub-wave v.

Wave C of its mega wave (6) is likely to end around 1,530.

It is about time to slowly get out of the market.


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耿晓磊《花房姑娘》

姜兴琦《斑马斑马》

Ron95 - Price to drop further

Crude oil price continues to move lower.

Last week the price of Ron95 dropped from Rm 2.27 a litre to Rm 2.21 a litre.

Looking at the previous week's candlestick, which is in red with lower prices, I expect the Government to lower the petrol price in tomorrow's announcement.

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