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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