KLCI waves 37 - How long is these Super Waves will last?

hotstock1975

Publish date: Sun, 13 Dec 2020, 08:07 AM

Weekly Time Frame

KLCI was able to trade higher and intiated a strong closed at 1684.58 after breahed above critical resistance 1610 last week. To recap, it is a good new start for the Bull to test higher level in order to overwrite the double top formation which formed years ago. However, caution is required along the way up for any knee jerk reaction possible. I am expecting an consolidation phase could be emerged in short run.

To recap, the Higher Degree of Wave 5 is still being constructed to archieve higher level. The current weekly PTI reading is still remain at 38 which indicating that the prior Higher Degree of Complex Correciton waves WXY was healthy which could succeed Wave 5 at higher level. No doubt that Wave 5 is confimred to be realized at higher level since KLCI was trading higher than 1618.01 (Wave 3). Subsequent minor waves would be elaborated further in daily time frame.

1) -DMI (red line) curved down with higher margin indicates bearish momentum is decreasing with greater pace.

2) +DMI (blue line) curved up with greater margin indicates bull strenght is returning with greater pace. Moreover, It incurred a breakout at R1 indicates continuous bull strength would be taken place.

3) ADX (pink line) continued heading up with greater margin implying that the volatility of the current trend is increasing with good margin.

Therefore, the summations of the 3 signals above is still implying uncertainty is reduced with increasing margin but caution is still required for any unexpected knee jerk reaction. From current situaton, +DMI above -DMI spread is widening indicates bull strenght is still in favor with improved volatility. Besides that, -DMI and ADX have realized an criss-crossed setup which could spur a strong momentum to the upside. However, a continuous increased in ADX reading is still required in order to validate a prominent trend to be developed.

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

Resistance - 1720

Immediate Resistance - 1700

Immediate Support - 1682, 1650, 1639, 1621-1623, 1610

Support - 1577, 1564, 1556,1530, 1490, 1461 (DT line)

Daily Time Frame

To recap, 5th sub minuette wave is being constructed and continuous uptrend was expected in coming days after broken out from the expanding triangle formation last week as shown. No doubt the breakout had initiated an uptrust and penetraded the projected target zone to hit the 2nd projected target of 1685 and close at 1684.58.

To re-iterate, the daily Higher Degree Wave's PTI reading is still remain at 42 indicating the prior Higher Degree of Complex Correciton waves WXY was healthy which could succeed Wave 5. Since the 2nd projected target had been hit, it had met the minimum criteria of Wave 5 which could be realized from now. If the momentum is continued to be strong, i would not rule out that it would hit the next possible target at 1706 or even around 1730 which the target generated based on Expanding Triangle formation. If it does, extension of 3rd/5th sub minuette waves would have to be revised to fit the prolong rally.

The entire wave structures will still be monitored closely if the low of Wave Y at 1452.13 is breached 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 Daily levels listed below was broken:

Resistance - 1720

Immediate resistance - 1700

Immediate Support - 1682, 1650, 1639, 1621-1623, 1610, 1597, 1577, 1560, 1554

Support - 1530, 1490

==============================================================================

Patient is required for the Implusive Waves of the SUPER CYCLE Bull Run.

==============================================================================

Let's Mr Market pave the waves.

Trade safely

Wave Believer

Discussions

1 person likes this. Showing 0 of 0 comments

Featured Posts

MQ Trader

Introducing MY's First IPO Fund for Sophisticated Investors!

MQ Chat

New Update. Discover investment communities that resonate with your ideas

MQ Trader

M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a

Latest Videos