Dow set new record high everyday from Monday to Friday. Over the week it added 457 points or about 2%.
Dow is on its journey to complete its major wave 7.
FBMKLCI (1,740)
KLCI proceeds with its wave (iii) of C formation. A gradual 15% correction that may drag until the middle of 2018.
Priceworth International Bhd (Rm 0.255)
Pworth has completed its mini wave 5 at Rm 0.28 level. For the most bullish scenario, the current correction is the mini wave 6. For this scenario, Pworth should start to move higher again to form its mini wave 7.
But if Pworth continues to move lower next week, then the Rm 0.28 is either the sub-wave i of wave (v) and the current correction is the sub-wave ii of wave (v),
Or the RM 0.28 high is a failure wave (v) that also marked the end of its major wave 1. Under this scenario the current correction will be much longer in duration and bigger in magnitude. The worst case scenario can be a 100% retracement.
A 100% retracement can mean only one thing, Pworth's proposal (announced in October 2016) to acquire 100% of Rumpun Capaian Sdn Bhd has failed. With that, its projected net profit of Rm 100 million for its 2018 financial year will no longer hold.
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