KLCI waves 23 - Wave C target is very close

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Publish date: Sun, 06 Sep 2020, 01:02 AM

Weekly Time Frame

As expected, few rebound atttempts were short live before further downside took place. After subsequent of selling off, KLCI was able to bounce up from DT line and closed above 1505. However, caution is still remained until further signal to justify any trend reversal.

On other hand, the higher degree of correction will be elaborated further in daily time frame.

1) -DMI (red line) continue heading up and broke out above resistance at point R1 indicates bearish momentum is intensify.

2) +DMI (blue line) continue heading down with narrow margin indicates bull strenght is continuing decrease with lower margin.

3) ADX (pink line) is still curving down with greater margin which implying the volatility of the current bull trend is still uncertain and weak.

Therefore, the summations of the 3 signals above is implying uncertainty still remains and knee jerk reaction is unavoidable as expected. Besides that, you may notice that -DMI & +DMI are marginally close to each other and Bull momentum will be faded when +DMI cross below -DMI if selling pressure continue.

Prevailing trend could be emerged if levels listed below was broken:

Resistance - 1610

Immediate Resistance - 1525, 1545

Immediate Support - 1505, 1490 (DT line)

Support - 1485,1475 (UT line)

Daily Time Frame

To recap from prior session, each wave A and B were formed with 3 sub minutte waves "abc" and wave C structure could be formed with possible regular 5 sub minutte waves OR 3 sub minutte waves which could lead to Complex waves such as WXY.

From current formation, 5 sub minutte waves had been identified indicates high tendency for wave C (1498.72) has archieved even it exceeded 7 points from pre-determined (T2) target 1506.

From prior session, (T1) and (T2) target levels mentioned had been tested which fit the wave counts' criteria. However, I would not rule out that 3rd target levels (T3) 1457.85 - 1465 (around 1.618% of wave A) may be tested if 1498.72 is broken. If it's emerged, the extension waves formed will be revised on the 5 sub minutte waves.

Therefore, the type of the entire correction formation will be monitored closely as wave C has the most properties of wave forms which may lead to complexity formations.

All waves' count and projected target are generated based on past/current price level and it may be subjected to vary if degree of momentum movement change.

Prevailing trend could be emerged if levels listed below was broken:

Resistance - 1580, 1610

Immediate resistance - 1525, 1545

Immediate support - 1505, 1490 (DT line)

Support - 1485, 1475 (UT line)

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What would happen after wave C ended?

It may lead to a new second Higher Degree of 5 waves bull run OR it could form another higher degree of complex correction waves before the start of new Higher Degree of 5 waves bull run.

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Let's Mr Market pave the waves.

Trade safely

Wave Believer

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