KLCI waves 28 - Is Wave 3 started ?

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Publish date: Sun, 11 Oct 2020, 01:42 AM

Weekly Time Frame

Finally, KLCI was able to close above 1515 convincingly after consolidated narrowly above both critical support of DT and UT line for weeks. These had realized the bullish signal of Hammer (created on 9/11/20) or Bullish Engulfing (combination of the hammer and the current white candle). Therefore, it increased the tendency of trend reversal to the upside.

On other hand, the Higher Degree of Wave counts will be elaborated further in daily time frame.

1) -DMI (red line) continue heading down with greater margin indicates bearish momentum is decreasing with penetrating below support at point R2 which signalling bear trend is still weakening.

2) +DMI (blue line) reversed up indicates bull strenght is in favor.

3) ADX (pink line) is still heading down with narrow margin which implying the volatility of the current trend is still low with uncertainty.

Therefore, the summations of the 3 signals above is implying uncertainty still remains and knee jerk reaction is unavoidable. From current situaton, +DMI had moving up above -DMI indicate bull strenght in in favor. However, a prominent trend has not been developed yet unless ADX start to curve up.

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

Major Resistance - 1610

Immediate Resistance - 1545

Immediate Support - 1525, 1515, 1500, revised DT line to 1484

Support - revised UT line 1478

Dailly Time Frame

To recap from prior session, Wave 2 could form longer correction phase and had to be revisit and revised after some knee jerk reaction which led to complex waves formations.

From the current observation, Wave 2 did not perform an Zig-Zag Formation (5-3-5) as it did not breach below 1488 (61.8%) and 2 extra minutte legs were created at 1522.32 and 1489.56 instead. These has prolong the consolidaton and complex waves formation had been structured. The prior complex waves [abc(w)-(x)-i-ii-iii-iv-v (y)] would be catergozied as wave W which ended at 1491.17 and wave X ended at 1519.05. Then, wave Y would consist of the new three sub minutte wave abc as labelled. No doubt that the completion of wave Y would be in conjunction with Wave 2 if there is no more subsequence complex waves there after. Since it has broken out the DT 1 line convincingly, the tendency of trend reversal is increasing and added bullish signal. However, wave count confirmation rules are still required for projecting accurate movement. In this case, Wave 2 can be validated if KLCI manage to breach and close above the end of Wave 1 (1541.14) convincingly. If it does, Wave 3 would have started and the possible Wave 3 target would be at around 1556 or 1600.

On the other hand, the prior Higher Degree of Correction Waves will be revised If the prior low of wave C (1474.23) is breached. Therefore, the entire wave structure will still be monitored closely as complexity wave formations could be emerged such as WXY correction waves may take place before Higher Degree of 5 Waves Bull Run.

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 - 1610

Immediate resistance - 1531, 1538

Immediate Support - 1525,1515, 1503 (DT 1 line), 1496, revised DT line to 1484

Support - revised UT line 1478

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Is the SUPER CYCLE Bull Run required more complex waves formed? Let's see.

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Let's Mr Market pave the waves.

Trade safely

Wave Believer

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