KLCI waves 58 - Is KLCI Still Bow to DIAMOND FORMATION?

hotstock1975

Publish date: Sun, 16 May 2021, 06:23 PM

Weekly Time Frame

To recap from prior session 57, the rebound had brought the index back with forming an Inverted Hammer and closed above the Bullish Engulfing Setup range 1584 -1612 which could still be validating the Bullish Setup even it was not above 1598.57. However, there might be a chance to realize these Engulfing Setup if KLCI is able to close above the high of the Inverted Hammer at 1602.09 on next Friday.

For the past 1 weeks, KLCI had closed below the Bullish Engulfing Setup lower range of 1584 indicated the setup had been invalidated and expecting a longer consolidation phase before a clearer signal emerged. To reiterate, we would like to see KLCI to close above 1610 for few weeks convincingly to justify an formidable trend 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) curved down indicates bear strenght is decreasing but still hovering above R1 indicates bearish sentiment is still in favor.

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

3) ADX (pink line) still heading up with consistent margin implying that the volatility of the current trend is still increasing but 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 which indicating the Bear strength is still in favor with improving volitality which indicates weakness may still emerging 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 - 1588, 1600, 1610, 1615, 1619 , 1627

Immediate Support - 1580, 1575-1577, 1564

Support - 1556, 1530, 1510, 1500

Daily Time Frame

To recap from session 57, I was assuming wave C to be constructed with 5 waves structure unless 1597.79 or 1623.47 being penetraded to the upside. Therefore, sub minuette wave iv would be ended soon at slightly higher level which beneath UT line then sub minuette wave v would take place to revisit the mentioned FIBO region 1575 (FIBO 61.8%) to 1545 (FIBO 100%). On the other hand, the Diamond Formaton's target (1500) was still possible if extenson wave emerged. Therefore, i won't rule out that any possibility may come if bearish extension waves emerged along the way to end wave C or Wave Z at lower level simultinously.

Currently, sub minuette wave iv is still being constructed if 5 minuette waves structure assumptions are valid. From the observation, sub minuette wave abc could succeed sub minuette wave iv and wave c could be on its way up. Therefore, I would expect any rebound could be shortlive to prolong the correction phase and any possible bearish extension waves might emerged to lead the way to the FIBO or DIAMOND Formation targets as mentioned above.

To reiterate, Wave Z could be formed in various correctives wave structure (Zig-Zag, Flat, Diagonal and etc) with momentum changes.

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.

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

Immediate resistance - 1587, 1592, 1595-1597, 1600, 1608-1610, 1615, 1620, 1625-1628

Immediate Support - 1578, 1572, 1566, 1554-1551

Support - 1538-1545, 1530,1518,1500

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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

Discussions

Be the first to like this. Showing 1 of 1 comments

hotstock1975

We are in the midst of sub minuette wave v...Let's watch

2021-05-21 12:11

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