KLCI waves 39 - Would 1700 to be breached in 2021?

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Publish date: Mon, 04 Jan 2021, 02:20 AM

Weekly Time Frame

No doubt that KLCI had entered into correction/consolidaiton phase after making a high of 1695.96. Healthy correction is good for longer run. However, caution is required along the way up for any knee jerk reaction possible and consolidation would continue in short run before the Bull recharged.

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. Since Wave 5 had been confimred which could be realized at higher level since KLCI was trading higher than 1618.01 (Wave 3), i am still expecting Wave 5 could end above 1700 unless there is certain criteria of wave counts breached. Subsequent minor waves would be elaborated further in daily time frame.

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

2) +DMI (blue line) curved down with lower margin indicates bull strenght is decreasing but still in favor with slower pace. Consoliation is still taking place as it moved below R2.

3) ADX (pink line) continue heading up with consistent margin implying that the volatility of the current trend is increasing consistently.

Therefore, the summations of the 3 signals above is still implying uncertainty is reduced with healthly margin but caution is still required for any unexpected knee jerk reaction. From current situaton, +DMI is still way above -DMI indicates bull strenght is still in favor with consistent volatility. 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 - 1639, 1650, 1700

Immediate Support - 1621-1623, 1610

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

Daily Time Frame

To recap, KLCI had already met the minimum criteria of Wave 5 at 1695.96 where the uptrust momentum had been halted twice at the high of around 1695 which formed on 07/05/2019. However, revision of wave counts indicated Wave 5 would have ended higher above 1700. The revision wave counts will be elaborate next.

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. Due to to momentum changes, i have reviewed the entire 5th minuette waves counts and the current waves had realized as v th sub extension of III rd sub minuette of 5th sub minuette of 5th minuette waves as labelled. The current correction waves could have structured as a-b-i-ii-iii-iv-v which v wave is on its way to complete iv sub minuette of 5th sub minuette of 5th minuette waves. Therefore, i won't rule out that these minuette correction waves could end down further at around 1615 to realized iv sub minuette of 5th minuette of 5th minuette waves before any implusive up waves. Therefore, the prior projected target of Wave 5 (1706/1730) are still not out of wood yet unless 1610 breached.

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 - 1639-1631, 1650, 1662, 1679, 1685, 1700

Immediate Support - 1620, 1615, 1610, 1597, 1577, 1560, 1554

Support - 1530, 1490

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

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Let's Mr Market pave the waves.

Trade safely

Wave Believer

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