FBMKLCI - Wave ii rebound has ended

FBMKLCI (1,760)

KLCI didn't move as I have projected over the weekend. The twelve numbers of 30-minute interval candlesticks has cut short the wave ii rebound.

Wave ii has ended at 1772 level on last Thursday, 8 points short of my projected 1780 level. Wave iii of C has already started on last Thursday afternoon.

Wave C is expected to end around 1,520 level, another 240 points to go.

From the 20-year chart, one can see that I am assuming that KLCI has been forming its mega wave (6) in the last 3 years.

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Weekly Update

Dow (21,830)

Dow closed with another new record high on Friday. My reading for Dow remained the same as last week. Dow is either on its way to complete its mini wave 5 to complete the major wave (7)

Or it is forming its mini wave 3, still a long way to go to complete its major wave (7).

FBMKLCI (1,767)

With respect to the two possibilities of Dow, KLCI is either has completed its wave B and is forming its wave C,

Or it is forming the wave (iii) of its wave B.

EG Industries Bhd (Rm 0.83)

If EG is forming its major wave 5, it should start to move higher again next week.

Inari Amertron Bhd (Rm 2.55)

Inari is about to complete its major wave 7 if its wave (v) has only 9 waves.

Insas Bhd (Rm 1.07)

Insas is either forming its wave (iv)

Or it is forming the sub-wave vii of its wave (iii).

Priceworth International Bhd (Rm 0.245)

My reading for PWorth is as shown. If it can move up from its current level, very likely it is forming the sub-wave iii of its wave (iii).

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EG Industries Bhd (Rm0.86)

EG opened with a gap and moved up strongly today gaining 3.5 sens (+4.2%). Is this the starting of its major wave 5?

EG took about 18 months to complete its major wave 4 correction with a rare ABCDE-X-ABCDE-X-ABCDE wave form.

How high can this major wave 5 go?

If the magnitude of this major wave 5 is to be the same as the magnitude of major wave 1 with a 60% gain. The target is Rm1.28 to form a double top reversal pattern. Its Warrant-C (Rm0.46) is expected to reach its previous corresponding high of Rm0.80 (+74%).

However, with some luck, if the magnitude of this major wave 5 can be the same as the magnitude of major wave 3 with a 146% gain, EG can go as high as RM2.00 and Warrant-C, with conversion at Rm0.50 (maturity date is 3/11/2020), is expected to reach at least Rm1.50 (+226%).

And of course I can be wrong too. Only the ONE high up there knows what is going to happen.

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Weekly Update

Dow (21,580)

First Scenario - Dow has completed the minor wave i of  its mini wave 5. The next up will be the minor wave ii of mini wave 5. At this rate the major wave (7) can be completed in August. It will be followed by major wave (8) with a 15% drop to around 18,600 level.

Second Scenario - If Dow can have a strong surge and can punch through its upper resistant line, then the wave count can be different and is as shown below. Under this scenario the 15% correction will be delayed by a few months. Instead of mini wave 1-2-3-4, it becomes a bullish 1-2, (i)-(ii) and i-ii, the next up will be the iii of (iii) of 3.

FBMKLCI (1,759)

In tandem with the first scenario of Dow,  it appeared to me that KLCI has completed its sub-wave i of its wave C. Sub-wave ii is likely to be completed in August. Sub-wave iii's drop can be damaging, be careful.

But in tandem with Dow's second scenario, my wave count for KLCI will have to take the following form where KLCI has not yet completed its wave B. The high in early June is the wave (i) of the wave 3 of B. The first low in July is the wave (ii) of 3 of B.

Wave B will be at a much higher level before the wave C comes in. A crucial question is whether Dow can punch through its upper resistant line.

Inari Amertron Bhd (Rm 2.43)

Inari is currently forming the wave (v) of its major wave 7.

The next up will be the sub-wave ix of (v).

Insas Bhd (Rm 1.06)

Insas is on the wave (iv) of of its major wave 3 if it continues to move lower next week.

However, it gained 3 sens last Friday with a nice green candlestick. If it can continues to move higher next week, it is possible that wave (iii) has nine waves and the down leg in the last 12 trading sessions is the sub-wave vi as shown and it has ended.

FACB Industries Incorporated Bhd (Rm 1.35)

FACB is one of my favorite stock as well as my most frustrated stock. FACB is cash rich.

In its last quarterly (January to March 2017) report, it reported an earning of 6.32 sens a share and net assets per share of Rm2.58, very solid. It has cash of Rm156 millions. If it is divided by its 84 millions of shares, cash per share is Rm 1.85, which is 50 sens higher than its current share price.

It has been forming its mega wave (5) since September 2015. But the climb up has been very slow. In the last 22 months it managed to gain only 39 sens. On average about 1.77 sens a month.

From the 10-year chart, FACB is currently on its sub-wave iii of its wave (iii) of 3 of (5).

From its 6-month chart it is on its minor wave iii of mini wave 3 of sub-wave iii.

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FBMKLCI - Expecting sub-wave ii rebound

FBMKLCI (1,754)

KLCI is about to completed its sub-wave i. Sub-wave ii rebound may be able to bring KLCI to 1,780 level. Be careful of the sub-wave iii, it can be quite damaging.

Looking at the 30-minute interval chart, I expect KLCI to complete its sub-wave i by Wednesday morning unless sub-wave i has more than nine waves.

Priceworth International Bhd (Rm 0.26)

if PWorth can move up from its current level, the next run-up can be the sub-wave iii of its wave (iii).

First of all it will need to break its upper trendline. iii of (iii) can be powerful with high volume.

Inari Amertron Bhd (Rm 2.44)

Inari is forming the wave (v) of its mega wave 7.

Wave (v) is expected to have nine sub-waves.

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Dow - Mini wave 5 in progress

Dow (21,637)

Is Dow about to end its major wave 7? The possibility is there unless it has nine sub-waves.

FBMKLCI (1,755)

KLCI is forming the wave C of its mega wave (6). It is likely to end below 1,600 level for a 15% pullback.

Looking at the 30-minute interval chart. It is possible that sub-wave i of C has ended and sub-wave ii rebound has started.

Unless the mini wave 8 of i has not yet ended as shown below.

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Insas Bhd (Rm 1.05) -

After loosing 5 sens in two days (Monday & Tuesday), Insas has ended its mini wave 5 with only three sub-waves, a failure mini wave 5. With that Insas has ended its sub-wave v and wave (iii) at Rm1.13 and it has started forming its wave (iv).

If wave (iv) were to end somewhere near its sub-wave iv, it might end around Rm 0.90 level before starting its wave (v).

Looking at Insas's 10-year chart, it still has a long way to go before completing its mega wave (5). Be careful of the current wave (iv) correction and the future higher degree major wave 4 pullback.

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Weekly Update

Dow (21,414)

Dow continues with its mini wave 4 formation. Technically it still has a mini wave 5 to go unless it has a failure sub-wave v with mini wave 5 missing.

FBMKLCI (1,759)

KLCI has started its wave C. It is forming the wave i of C at this moment. If KLCI can have a rebound from its current level, very likely the rebound is the wave ii of C, forming a 'head and shoulder' reversal pattern.

Once KLCI continues to move lower next week, we can forget about the 'head and shoulder' pattern.

ATTA Global Group Bhd (Rm 1.16)

ATTA punched through the lower support on Friday. With that drop, very likely it has completed its mega wave (1) and has started its mega wave (2).

The question now is how low can mega wave (2) go? Technically it can stop at major wave 4 at 1.05, or stop at major wave 2 at 0.65. The worst case is a 100% retracement to its September's low of 0.435 which is unlikely.

Another possibility is a running A-B-C major wave 4 as shown below.

EG Industries Bhd (Rm 0.81)

EG is at the tail end of its major wave 4. Hopefully major wave 5 can start soon.

Gadang Holdings Bhd (Rm 1.30)

Gadang is about to complete its major wave 3.

There is only one more run-up, the mini wave 5.

Insas Bhd (Rm 1.10)

Insas is about to end the sub-wave v of its wave (iii).

One more wave to go, the minor wave v of mini wave 5 of its sub-wave v.

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