Weekly Update

Crude Oil WTI (US$ 32.86 a barrel)

Mini wave 4 continues with its journey. Expected to end at US$38.00 within the next 5 to 6 weeks before mid April. Watch out for the last mini wave 5 plunge to below US$25.00 a barrel.

Dow (16,639)

Dow is forming the mini wave 3 of its sub-wave i. I expect its sub-wave ii to move in tandem with crude oil's mini wave 5. If crude oil price were to go below US$ 25 in its mini wave 5, the sub-wave ii of Dow might go for a 100% retracement to the starting point of its sub-wave i at 15,660.

FBMKLCI (1,663)

KLCI continues to complete its sub-wave i. Currently KLCI is either forming its mini wave 4, a more likely scenario.

Or it is a more bullish but less likely possibility as shown below. The current correction is the minor wave ii of its mini wave 3. For this scenario, KLCI needs a powerful minor wave iii surge next week. Failure which, this scenario is out.

Pan Malaysia Corporation Bhd (Rm 0.27)

I have overlooked a small mini wave 1-2 at the starting of sub-wave v. A costly mistake.  So, wave (iii) has ended and wave (iv) in progress.

Need to wait for wave (v) in order to feel good again.

Farms Best Bhd (Rm 0.77)

Farmbes reported a very bad quarterly loss of 16.86 sens a share on Wednesday after the market has closed. But surprisingly its prices held very well in the next two trading days, but technically it has to be that way as it is on its way to complete its sub-wave ix.

Earlier on 15th February, Farmbes has announced that it has received a 'Letter of Intent' from CAB Cakaran to purchase assets (28 Broiler Farms, 6 Breeder Farms, 7 Depots and 1 Poultry Processing Plant) at a purchase consideration of up to Rm 242 million. It also mentioned that the total book value for the assets is about Rm 93 million. The extraordinary gain at the conclusion of the S&P will be Rm 149 million. If we divide Rm 149 million by its number of share of 61 million, it is Rm 2.44 a share. Farmbes also mentioned that its current bank borrowing is Rm 250 million.

EG Industries Bhd (Rm 0.89)

The rebound after its 5-wave down has ended.

From its 10-Year chart, it is possible that EG has completed its major wave 3 and is currently forming its major wave 4.

From its 5-Year chart, EG took 14 months to complete its major wave 2. Major wave 3 ended in early January, this is only the second month of its correction, still a long way to go to complete its major wave 4. Very likely the current down trend is the wave a of 4. The next rebound is likely to be the wave b of 4.

EG has reported an impressive good earning of 4.57 sens a share. Please refer to its Friday's press release titled 'EG Industries Core Net Profit Rises 5 times in 2Q16'. Click to read.

Same old words, 'In stock, anything can happen', if 'they' decided to push all the way up, then we will have the following wave count. wave (i), (ii) and (iii) of major wave 3, where wave 3 has not yet ended !!!

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EG Industries Bhd (Rm 1.01)

EG gained 8 sens (+8.6%) to close at Rm 1.01 today. From its January high of Rm 1.23 to its February low of 83.5 sens, it has formed 5 sub-waves (i-ii-iii-iv-v), the point at 83.5 sens has to  be either wave a or wave (i).

If it is wave a of 4, then the current up-trend is the wave b of 4.

But if it is wave (i), then the current up-trend is lightly to be the wave (ii) of a.

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Weekly Update

Crude Oil WTI (US$31.95 a Barrel)

Crude Oil has completed its mini wave 3.

And it has started its mini wave 4 rebound. If it is an a-b-c mini wave 4, this rebound may take another 6 weeks to complete.

Mini-wave 5 may take the price to below US$ 26 a barrel.

Dow (16,391)

My reading for Dow remained the same. It is either forming its major wave (7), 

or it is half-way through its mega wave 2 correction, which is expected to be an ABC-X-ABC corrective wave.

FBMKLCI (1,674)

So far so good, wave (iii) of major wave 5 is progressing nicely.

Pan Malaysia Corporation Bhd (Rm 0.31)

PMCorp is forming its mega wave (5).

With last Friday's red candlestick, there is a possibility that PMCCorp is going for a diagonal sub-wave v to complete its wave (iii).

 

But if it can break its upper trend line on Monday or Tuesday, then there is a long way to go for it to complete its sub-wave v.

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Pan Malaysia Corporation Bhd (Rm 0.32)

PMCorp gained 2 sens today with record volume. With this, it is confirmed that PMCorp is forming the mini wave 3 of its wave (iii) of mega wave (5).

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Pan Malaysia Corporation Bhd (Rm 0.295)

In November 2015, PMCorp has proposed to undertake a capital reduction and capital distribution of 8 sens for each ordinary share. Since then its share price has started to move higher from 20 sen level to its current level of 29.5 sen.

From its 10-year chart, it is rather clear that at this moment PMCorp is in the process of forming its mega wave (5). So far it has completed wave (i) and (ii) of (5).

From its 6-month chart, PMCorp has completed the sub-waves i-ii-iii-iv. The surge from 24 sen to 31 sen in early February is likely to be its mini-wave 1. Mini-wave 2 should not drag for too long or else it would become a failure v and that would mark the end of its wave (iii). A move above 31 sen will pave the way for its mini waves 3-4-5 of v.

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EG Industries Bhd (Rm 0.865)

I mentioned in my previous posting 'EG is forming its major wave 4. Major wave 5 can be quite juice'.

EG gained 3 sens today, some started to ask whether this is the starting of its major wave 5?

My answer is 'No'. From the 5-year chart, both the magnitude and duration for the major wave 4 until this moment is too short. At best, EG has completed its wave a of 4. If the share price can continue to move higher, very likely that is the wave b of 4. There will be another down to complete the wave c of 4 before the juicy major wave 5 can start.

There is another possibility which, at this moment, I think is unlikely. But if EG can surge strongly with record volume, then the early January high of Rm 1.26 is not the end of its major wave 3, it is only the wave (i) of its major wave 3. Then the next surge can be the wave (iii) of major wave 3 of its mega wave (3). This possibility may be there but I think is unlikely unless it can surge with unmistakable record volume.

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Weekly Update

Crude Oil WTI (US$ 29.07 a barrel) 

Crude oil price is at the tail end of its sub-wave v. It may take another 3 to 4 months to complete its wave (iii) before the wave (iv) rebound comes in.  

Dow (5,973)

If Dow is forming its major wave (6), very likely, Dow has just completed the major wave (6).

Another possibility for Dow is as shown below. Mega wave 1 has only 5 waves and it has been completed. Dow is going to move side-way to complete its complex mega wave 2.

FBMKLCI (1,643)

Hopefully KLCI has completed its sub-wave ii and soon sub-wave iii can start to run.

Dutaland Bhd (Rm 0.465)

If my wave count for Duta is correct, Duta is going to surge with very high volume.

EG Industries Bhd (Rm 0.835)

Currently EG is forming its major wave 4. Major wave 5 can be quite juicy.

Farms Best Bhd (Rm 0.815)

The current pullback is the sub-wave viii. It may need a few more days to complete its sub-wave viii.

Insas Bhd (Rm 0.675)

If I am right in my chart reading, Insas is about to start the sub-wave iii of its major wave 5.

Pan Malaysia Corporation Bhd (Rm 0.295)

PMCorp is about to complete its major wave 5. A failure 5 will stop its journey at 36 sens.

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