Dow gained 175 points (+0.8%) after 80 minutes of trading. It appeared to me that the sub-wave v is taking the form of a 'rising wedge formation' to end Dow's major wave (7). A bearish terminal pattern. This can be the last surge before the major wave (8)'s 15% pullback takes place.
A very bearish scenario unless Dow can move up strongly and punch through the upper trend-line as shown below. Then it is a different story - the major correction will be delayed.
FBMKLCI (1,768)
In tandem with the Dow, KLCI is likely to move higher to form the 'right shoulder' to complete its 'head and shoulder' reversal pattern. Very bearish. Wave B has ended in early June unless in the next run-up KLCI can break 1,800 level instead of forming the 'right shoulder'.
Insas Bhd (Rm 1.09)
Insas opened lower today but closed at its high to form a bullish 'engulfing pattern'. Very likely this is the minor wave iii of mini wave 5 of sub-wave v of wave (iii). Final journey before the wave (iv) pullback.
Ron 95 - Price to go higher.
Last week the crude oil (WTI) price moved from its Monday's low of US$42.63 a barrel to Friday's closing of US$ 46.04 a barrel. Up US$ 3.41 a barrel (+8%).
I expect petrol prices to go higher in the coming Wednesday fuel price announcement. Don't forget to fill up your fuel tank by Wednesday.
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