KLCI waves 54 - Patient Is Required For Complex Corrective Wave Z

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Publish date: Sun, 18 Apr 2021, 02:14 PM

Weekly Time Frame

To recap from prior session 53, an Bullish Engulfing Candle has been formed indicates bull strenght could spill over to following week and the upside bias could lead to 1626 if the momentum continue. However, i would rather be caution unless KLCI could sustain above UT line or 1610 for few more weeks to develope stronger foothold for further upside.

For the past one week, some weak sentiment remained to halt KLCI from going up further and sustain above 1610. However, the Bullish Engulfing setup is still valid since it had rebounded and closed above 1598.57. As long as this setup level can be sustained, the upside bias could still be realized and penetraded above 1610 for longer run. Besides that, UT line has been revised based on closed price from March 2020 up to now in order to cater better finishing and accuracy.

From wave count perspective, the Higher Degree of Correction wave would be prolong with Multiple WXYXZ complex waves before a new set of Higher Degree of Bull Wave take place. Subsequent minor waves would be elaborated further in daily time frame.

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

2) +DMI (blue line) continue heading down with consistent margin indicates bull strenght is still decreasing with lower pace.

3) ADX (pink line) continue heading down implying that the volatility of the current trend is decreasing and still very low.

Therefore, the summations of the 3 signals above is still implying Bear strength is in favor and caution is still required for any unexpected knee jerk reaction. From current situaton, +DMI is still below -DMI lines with consistent spread indicating the current bear strength is in favor and consolidating expected before regaining the momentum in coming weeks. 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 - 1633, 1642, 1650, 1700, 1720

Immediate Resistance - 1610, 1615, 1619 , 1627

Immediate Support - 1600, 1580, 1575-1577

Support - 1564, 1556, 1530

Daily Time Frame

To recap from session 53, wave B was on it way up which has met the minimum criteria of FIBO 61.8% at 1612. Since it has returned above DT line, we might see it could test at higher level at 1623 (FIBO 76.4%) and DT line would the resistance line to watch.

Currently, wave B could still being constructed even it met the minimum criteria of FIBO 61.8% last week unless 1590.67 breached to justify the wave B ended with wave abc at 1615.49. Otherwise, it would end with 5 wave structures if penetrated above 1615.49 and the DT line is still remained as upside resistance to watch. Besides that, the UT line, which newly revised from Weekly Time Frame, will be support line to watch. To reiterate, Wave Z could be formed in various correctives wave structure (Zig-Zag, Flat, Diagonal and etc) with momentum changes along DT and UT lines.

Since Multiple Complex Wave emerged, the new set of Higher Degree of 5 Waves Bull Run or Primary Wave 3 have yet to be seen until all corrective waves are served convicingly. Thus, Higher Degree of Correction is still being prolong by these Multiple Complex Waves WXYXZ.

The entire wave structures will still be monitored closely if the high of Wave X1 (1646.24) is penetraded 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. On the hand, the prior Higher Degree of Correction would be prolong if Wave Y (1557.55) breached.

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 - 1645, 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1610, 1615, 1620, 1625-1628, 1639

Immediate Support - 1600, 1595-1597, 1585, 1580, 1572

Support - 1566, 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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