KLCI waves 49 - Is Primary Wave 3 Super Cycle Bull Run Started ?

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Publish date: Sat, 13 Mar 2021, 04:00 AM

Weekly Time Frame

To recap from prior session 48, i was expecting KLCI would test the all time critical resistance at 1610 to justify whether trend reversal was being emerged. No doubt that the momentum was strong to drive gap up and penetrated above 1610 before it retraced and closed slightly above 1610. From price action perspective, it had formed an shooting star indicated selling pressure might be emerged strongly if it closed down the gap and breached 1600 on next Friday. Unless KLCI is able to sustain above 1610 and it is better off to close above 1633.

From wave count perspective, the Higher Degree of Correction wave is believed to be ended and a new set of Higher Degree of Bull Wave could be started. Subsequent minor waves would be elaborated further in daily time frame.

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

2) +DMI (blue line) continue heading up with greater margin indicates bull strenght is increasing with greater pace.

3) ADX (pink line) started to curve up implying that the volatility of the current trend is improving but still low.

Therefore, the summations of the 3 signals above is still implying Bull strength is emerging but caution is still required for any unexpected knee jerk reaction. From current situaton, +DMI is above -DMI lines with greater speard indicating the current bull strength could spill over coming week. The current volatility is still low and continuous increased in ADX reading 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 - 1621, 1627, 1633

Immediate Support - 1610, 1600, 1590-1593, 1580, 1575-1577

Support - 1564, 1556, 1530

Daily Time Frame

To recap from session 48, KLCI could retest 1610 -1615 since it had returned above UT line with good volumn and wave C could have been justified to end at 1557.55 if 1614.92 penetrated.

Due to the degree of momentum continue to be strong, wave C has been realized in conjunction with Wave Y. Besides that, the wave counts have been revised and sub minuette extension wave (i-ii-iii-iv-v) has been completed to end sub minuette wave 3. Currently, wave 4 correction is underway which could end in between 1612 (38.2 %) and 1603 (50 %). Next, wave 5 will be taken place to form Higher Degree of implusive Wave 1.

Obviously, KLCI resisted at H&S neckline and almost reached the high of Wave X. I believe it will be penetrated soon when wave 5 take place. On the largest scale highest degree of wave count, are we seeing this as the beginning of Primary Wave 3?

The entire wave structures will still be monitored closely if the high of Wave X at 1646.24 is penetrated which indicates Higher Degree of implusive Wave 1 could have emerged. 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 - 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1622, 1625-1628, 1639, 1645

Immediate Support - 1612, 1608, 1595-1600, 1588, 1581-1585, 1572, 1566

Support - 1554-1551, 1538-1545

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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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