KLCI waves 46 - Critical Level To Succeed Head & Shoulder Formation and Glove Waves (HARTA & TOPGLOVE)

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Publish date: Sun, 21 Feb 2021, 11:39 PM

Weekly Time Frame

To recap, 1600 was still the level to watch for the validation of trend reversal and it was better off if KLCI could close above 1610 to re-established a stronger foot hold to the upside in longer run.

For the past 1 week, it still failed to close above 1610 after made another attemp to reach the high of 1614.92. Besides that, a Dark Cloud Cover candle formation has been formed which indicates selling pressure is still in favor. These formation would be confirmed if KLCI breahed and closed below 1580 on coming Friday.

To reiterate, the Higher Degree of Correction waves are still being constructed after Wave 5 has been realized at 1695.87 instead of 1695.96. Subsequent minor waves would be elaborated further in daily time frame.

1) -DMI (red line) still heading down with greater margin indicates bearish momentum is decreasing with slower pace.

2) +DMI (blue line) curved up with narrow margin indicates bull strenght is still increasing with slower pace and hovering below R2 indicates caution mode is still required.

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

Therefore, the summations of the 3 signals above is still implying uncertainty is still emerging with narrow margin and caution is still required for any unexpected knee jerk reaction. From current situaton, +DMI is still slightly above -DMI but spread is widening which indicates Bull strenght is in favor. However, the volatility is still low and continuous increased in ADX reading to would justify a prominent uptrend to be developed.

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

Resistance - 1642, 1650, 1700, 1720

Immediate Resistance - 1610, 1621-1624, 1635

Immediate Support - 1600, 1590-1593, 1580, 1575, 1564, 1556,1530

Support - 1490, 1428 (DT line)

Daily Time Frame

To recap, UT line was still the critical level to watch for validating the Head and Shoulder Formation breakout to the downside. Otherwise, the formation will be invalid if it able to move up and close above H&S neckline convincingly. Besides that, wave c had already being constructed and met wave B's minimum criteria of 1598-1613 to closed at 1599. However, i will not rule out that wave B could end higher as it had breached the DT line as shown.

Obviously, KLCI had made a high towards H&S neckline before selling pressure took place which realized wave c and wave B concurrently at 1614.92. Currently, wave C could being constructed towards to the downside with 5 sub minuette waves structure (i-ii-iii extension completed) and sub minuette wave iv could still being constructed before wave v to end wave C which would end Wave Y in conjunctionally. Even the UT line had provided an good support for the immediate rebound, i am still be very caution for any possible complex minuette waves structure from now.

Since KLCI is still moving in between H&S neckline and UT line channel, i am still holding my view for any possible UT line breaching which might lead Wave Y be ended at 3 possible targets at 1523 (FIBO 100%), 1447 (161.8%) or Head and Shoulder Formation breakout target (1490-1500).

The entire wave structures will still be monitored closely if the high of Wave X at 1646.24 is breached which indicates Higher Degree of implusive Wave 1 could have emerged. If it is true, Wave Y would be revised and ended at 1560.54 instead of wave A since it had met the minimum criteria of of FIBO 61.8%(1571). Thereafter, a new set of Higher Degree of 5 Waves Bull Run may take place and Primary Wave 3 would be emerged which i should label from the start. Thanks for an input from an 3i member on the Highest Degree/Primary Waves labelled counts.

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 - 1639-1631, 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1586, 1595-1600, 1606, 1610, 1615, 1620

Immediate Support - 1579, 1572, 1560, 1554-1551, 1538-1545

Support - 1530, 1490

HARTA & TOPGLOVE Waves

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HARTA

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To recap, the gap resistance was too strong to be breached and led to end 5th sub minuette wave at RM13.44 to form an Ending Diagonal Formation in conjunction with minuette wave 1. I have re-labelled the current counts with Roman numerals instead to justify the current trend. Currently, sub minuette correction abc wave is being constructed with wave a could have completed.

Currently, wave c is being constructed after wave b ended at RM12.90. Besides that, wave c level had already met the minimum criteria at RM12.32 (FIBO 61.8%). i won't rule out that it would hit two potential targets of wave c at RM11.93 (FIBO 100%) or RM11.33 (FIBO 161.8%) to complete minuette wave 2 correction.

The entire wave structures will still be monitored closely and revised if the low of Wave C (RM10.24) is breached which may indicate new sub minuette extension waves within Wave C could emerged.

TOPGLOVE

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To recap, the correction minuette waves have met the minimum criteria of FIBO level 76.4% which indicates the current correction could end soon.

As far as it goes, the correction minuette waves had been structured as 5 sub minuette waves (i-ii-iii-iv-v) which had met the minimum criteria to end minuette wave 2 correction at 100% FIBO level at at around prior sub minuette wave iv. Otherwise, i will be watching it closely whether there would be any extension waves before the end of correction.

The entire wave structures will still be monitored closely and revised if the low of Wave C (RM5.23) is breached which may indicate new sub minuette extension waves within Wave C could emerged.

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Patient is required for the SUPER CYCLE Bull Run.

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Let's Mr Market pave the waves.

Trade safely

Wave Believer

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