KLCI waves 55 - Consolidation To Prolong Complex Corrective Wave Z ?

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Publish date: Sun, 25 Apr 2021, 10:28 PM

Weekly Time Frame

To recap from prior session 54, some weak sentiment remained to halt KLCI from going up further and sustain above 1610. However, the Bullish Engulfing setup was still valid since it had rebounded and closed above 1598.57. As long as this setup level could be sustained, the upside bias could still be realized and penetraded above 1610 for longer run.

For the past one week, KLCI had been consolidating above UT line and able to close above 1598.57 which indicated upside bias emerged and could validate Bullish Engulfing setup if KLCI able to close above 1612.25 on next Friday. However, i am still considering 1610 is the critical level to watch for longer run.

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 lower 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 lower 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 54, 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.

Currently, KLCI had been consolidating in a tight range in between DT and UT lines as expected. Assuming wave B construction consist of 5 waves structure, sub minuette wave i-ii-iii-a-b-c had been formed with a possibility wave iv could have ended at 1591.83. If this is true, sub minuette wave v could have started and might end at higher level. However, these minuette corrective waves would still be monitored closely for anticipating any impending complex waves possible next weeks. Therefore, both levels 1590.67 and 1615.49 are still the levels to watch to justify the criteria as mentioned in prior session above.

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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