KLCI waves 31 - Higher Degree Corrective Wave Resurface

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Publish date: Sun, 01 Nov 2020, 04:36 AM

Weekly Time Frame

KLCI had faced continuous selling pressure and penetrated below UT/DT line after broken down the range of 1486-1515. Therefore, short term continuous trend to the downside is expected in coming days. However, there could be a short term consolidation emerged and Caution is highly required towards Friday before any clearer direction emerged.

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

1) -DMI (red line) reversed up with greater margin indicates bearish momentum is increasing and intensify.

2) +DMI (blue line) was still heading down with greater margin indicates bull strenght is still weakening.

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

Therefore, the summations of the 3 signals above is implying uncertainty still remains and knee jerk reaction is unavoidable. From current situaton, -DMI crossed above +DMI indicate bear strenght is still in favor with increasing margin. With ADX reading improving, bear strenght is becoming strong and would lead to a prominent trend to be developed. However, ADX is still required to curve up in order to validate the current bear trend.

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

Resistance - 1545, 1610

Immediate resistance - 1474, 1486, 1500, 1515

Immediate Support - 1460

Support - 1447,1436

Dailly Time Frame

As mentioned on every prior session, Higher Degree of Correction Waves will be revised If the prior low of wave C (1474.23) was breached. Due to continuous of uncertainty, this level was unable to hold and partial wave's count has been revised. Therefore, an Higher Degree of Complex Correction waves WXY has emerged since 9/10/20 where Wave W was coincide with Wave C and Wave X to replace Wave 1 (1541.14) on 9/17/20. Currently, Higher Degree of Wave Y is being constructed with a possible double two formation with sub minutte wave w-x-y-x-z which sub minutte wave z consist of Expanding Diagonal formation with 5 sub minutte waves.

From waves counts criteria perspective currently, the sub minutte 5th wave target has met the minimum criteria which implying that wave z might be completed at the same time at 1461.65. Since DCU1 line was just breached with narrow margin, it could rebound from this line again. However, i won't rule out that there could be extension sub minutte waves which may lead to further downward if selling momentum continue. If it is true, the next possible target would be in between 1430-1440.

The entire wave structure will still be monitored closely as more complexity wave formations could be emerged such as multiple 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 - 1545, 1610

Immediate resistance - 1474, 1486, 1500, 1515

Immediate Support - 1460, 1452

Support - 1436, 1424

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More complex waves are unavoidable for SUPER CYCLE Bull Run? Looking forward.

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Let's Mr Market pave the waves.

Trade safely

Wave Believer

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