Weekend Update

Crude Oil WTI (US$ 34.72)

Crude oil price is at the tail-end of its major wave 3.

It is likely that sub-wave iii of its wave (v) of major wave 3 has ended. I am anticipating a sub-wave iv rebound to US$40.

Dow (17,128)

Dow has a sharp 367 points drop (-2.1%) on Friday. It is likely that Dow is forming the wave e of (iv).

FBMKLCI (1,643)

KLCI dropped 12 points (-0.76%) on Friday. My reading for KLCI remained the same as what I have posted on Thursday.

Datasonic Group Bhd (Rm 1.53)

Dsonic announced on Tuesday that the Ministry of Home Affairs has awarded the company a contract of Rm 318 millions for the supply of 12.5 millions 'Passport Chips' for a period of 5 years from 1/12/2016 to 30/11/2021.

Has Dsonic completed its wave (ii) ?

EG Industries Bhd (Rm 1.03)

If major wave 3 has ended, EG may take a few months to compete its major wave 4. But if EG were to set new high next week, then the current correction could be the sub-wave i and ii of (v).

Inari Amertron Bhd (Rm 4.43)

If its wave (iii) has only 9 sub-waves, it is possible that its wave (iv) has started. It may take months to complete the (iv).

But if the wave (iii) has more than 9 waves, Inari is going to set new highs.

Insas Bhd (Rm 0.765)

Very likely Insas has just completed the wave a of its wave (ii).

MY E.G. Services Bhd (Rm 3.91)

To hkloon, MYEG is forming its wave vii.

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Federal Reserve rate hike

The Federal Open Market Committee (FOMC) voted unanimously to raise the Federal Funds Rate (FFR) by 0.25 percentage points on Wednesday.

World bourses including Bursa Malaysia responded positively to the rate hike.

Bursa Malaysia FBMKLCI gained 22 points to 1,656. Since mid August 2015, FBMKLCI has been forming the wave (ii) of its major wave 5

This 22 points jump is likely to mark the end of its wave (ii) if KLCI can continue to move higher in the next few days.

However, if KLCI is unable to break its upper resistance line in the next few days and starts to move lower, then it is heading for wave e of (ii)

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Weekly Update

Crude Oil (WTI) (US$35.35)

Sub-wave iii of wave (v) of major wave 3 is in progress

Dow (17,265)

Dow dropped 309 points (-1.76%) on Friday. Dow is currently forming the wave c of (iv).

FBMKLCI (1,640)

KLCI is forming the wave c of (ii).

Datasonic Group Bhd (Rm 1.56)

Dsonic is about to complete its wave C of 2.

EG Industries Bhd (Rm 1.04)

If investors continue to chase EG next week, Friday's one-day correction is the mini wave 6, we still have mini wave 7, 8 and 9 in front. This is the most bullish version.

If there is a minor correction next week, then EG may be forming its sub-wave ii.

However if correction were to continue for more than a week, it is more likely that major wave 3 has ended and the down-trend is likely to be the wave A of its major wave 4.

Inari Amertron Bhd (Rm 4.38)

Inari is at the tail-end of its wave (iii).

If Inari can continue to move higher on Monday, then it is forming the mini wave 5 of its sub-wave ix of its wave (iii).

But if Inari has no more rebound next week, then very likely it has completed its wave (iii) and it is forming the wave a of its wave (iv).

Insas Bhd (Rm 0.755)

Basing on its closing price line chart, Insas has completed its wave (i) in mid-November. If it can continue to move higher in the next few weeks, then I must say it has also completed its wave (ii).

But if Insas were to continue to move lower next week, then there is a possibility that it is at the tail-end of its wave a of (ii).

Happy Family

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EG Industries Bhd (Rm 1.05)

EG added another 4 sens today to close at Rm 1.05. Its major wave 1 gained 60%. To date its current major wave 3 has gained 110%.

110/60=1.83, which is more than 1.618 times of its major wave 1. Is the current major wave 3 going to be 2.618 times of its major wave 1? If so then the current major wave 3 will have to gain 157% to reach Rm 1.26 level.

If I don't bother about the Fibonacci ratios, looking at the 6-month chart, EG has formed 5 mini waves for its wave (v). There is a possibility that the wave (v) is about to end or has ended, unless it has 9 mini waves. And if the major wave 3 has only 5 waves, then it is about to end or has ended too, and again unless its has 9 waves.

Another bullish possibility is as shown below. The end of mini wave 5 is only the end of sub-wave i of wave (v), the next correction could be its the sub-wave ii. Under this scenario we still has sub-wave iii, iv and v of wave (v) in front. Next pullback is crucial.

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Dow - Has wave (iv) ended ?

Dow (17,847)

Dow has a sharp 252 points (-1.4%) drop on Thursday followed by a 369 points (+2.12%) surge on Friday. If it can break 18,000 early next week, then very likely it has completed its wave (iv).

But if Dow is unable to move higher next week, it may go for a abcde wave (iv) formation.

EG Industries Bhd (Rm 0.915)

EG has either completed its wave (v)

Or it is forming the sub-wave i and ii of its wave (v).

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Dow - wave c of (iv) has started

Dow (17,655)

After dropping 159 points on Wednesday, Dow continues with the down trend by dropping another 74 points to 17,655 on Thursday morning after 40 minutes of trading. It is forming the wave c of its wave (iv).

I expect this wave c to end around 17,200 level, another 450 points to go.

Felda Global Ventures Holding Bhd (Rm 1.72)

FGV dropped another 5 sens to Rm 1.72 on Thursday. I guess FGV has completed its wave b of 2. Wave c is likely to end at around Rm 1.60 level.

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FGV and EG

Felda Global Ventures Holding Bhd (Rm 1.85)

FGV surprised me by adding 8 sens on Tuesday, but I don't think its wave (2) has ended, the correction looked small. Most likely the previous low is only the wave A of (2).

EG Industries Bhd (Rm 0.855)

EG added 4 sens with improved volume. I guess this is the starting of wave (v) and most likely this is the last wave for its major wave 3, unless this major wave 3 has 9 waves.

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