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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Dow - Watchout for c of iv

Dow (17,798)

Dow remained on wave b of its sub-wave iv. The next c of iv may drop 800 points

FBMKLCI (1,682)

KLCI moved side way within a narrow range in the last 5 trading day. My reading for KLCI is the same as last week.

Insas Bhd (Rm 0.77)

Insas dropped 6.5 sens (7.7%) on Friday after it has reported losing 4.38 sens a share for its latest quarterly earning.

Looking at its last 5 quarterly earnings, erratic is the word.

The main contribution from item 'Other Income' was gain on disposal of quoted securities that can fluctuate between Rm 7 million to Rm 44 million.

For item 'Other Operating Expenses', main contributors are gain/loss on foreign exchange and fair value gain/loss of financial assets.

It is very difficult to project its next earning. I have to go back to the chart to guess its possible movement.

From the long-term 10-year chart, my guess is that Insas is on its major wave 5. It has completed its wave (i) of 5.

 

Insas is currently forming its wave (ii). It can either be a simple a-b-c as shown below or a-b-c-d-e. It can also be something else. Need to wait for it to reveal further.

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Insas losing 4.38 sens a share

Insas Bhd (Rm 0.835)

After the market has closed, Insas reported losing 4.38 sens a share for its latest quarter ending 30 September.

Comparing with the previous quarter, its revenue dropped by 50%, 'other income' dropped by 65% and share of profit of associate dropped by 85%. The most damaging item is 'other operating expenses' where Insas recorded a negative Rm 48.9 million. Further checking revealed that Insas incurred losses of Rm 10 million on foreign exchange and Rm 27 million on loss of fair value of financial assets.

I expect its share price to be quite volatile tomorrow. I shall wait for the dust to settle before reviewing its 6-month chart. Its longer term chart should remain the same.

It has completed its major wave 1-2-3-4 and is currently forming its major wave 5.


Datasonic Group Bhd (Rm 1.60)

Instead of giving me another green candlestick, Dsonic gave me a bearish red engulfing candlestick. It is forming the wave c of (ii).

If it can move up tomorrow, then it is a running a-b-c. If it continues to move lower, then it is an expanding a-b-c.

The above reading is based on the assumption that Dsonic has completed its major wave 2.

However, if it continues to move lower in the next few days and it goes below Rm 1.50, then there is this possibility that Dsonic has not yet completed its major wave 2, which is taking the form of a a-b-c-d-e-X-a-b-c, a complex major wave 2. 

EG Industries Bhd (Rm 0.825)

EG has broken its uptrend with 3 consecutive down candlesticks. Since its previous uptrend from 78 sens to 88 sens has only 3 waves, it has to be wave b of (iv).

After 3 days of consolidation, if EG can start to move higher again tomorrow, then it is a running a-b-c wave (iv).

If EG continues to move lower, then it is likely to be an expanding a-b-c wave (iv). It may reach 76 sens to complete its c.

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Dsonic And Insas

Datasonic Group Bhd (Rm 1.66)

Dsonic managed to break the Rm 1.65 level but closed only one sen above that level, not that convincing. One more green candlestick would seal Dsonic last chance of turning back. Sub-wave iii has to be more dynamic than sub-wave i. At least its volume must exceed that of i.

Insas Bhd (Rm 0.83)

Insas is forming the wave c of viii.

Since Inari has reported a much better quarterly result, its higher contribution should pave the way for Insas to report an earning much higher than its previous quarter of 5.07 sens.

Even with its previous earning of 5.07 sens a quarter, net assets of Rm 1.91, par value of Rm 1.00 and 0.322 share of Inari (worth  Rm1.30) in it, I see no logic why it is at Rm 0.83. Unless it is going to announce a horrible quarterly earning within the next few days before end of November.

The threshold for triggering a mandatory offer is 33% and not 30% that I have mentioned previously. Based on Thong Kok Khee's announcement to Bursa Malaysia on 25/11/2015 its holding is 32.73%. I don't expect much selling from him for reason of triggering a mandatory offer. If he were to continue his selling, then it must be for some other reason.

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