KLCI waves 63 - Could KLCI's Sector Rotation Play Support The Breakout Of Falling Wedge Pattern ?

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Publish date: Sun, 20 Jun 2021, 04:58 PM

Weekly Time Frame

To recap from prior session 62, an breakout had been attempted again on the Falling Wedge Pattern (upper red line band). To reiterate, a short term consolidation is still require within the Wedge's band before a true breakout emerged.

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For the past 1 week, an breakout attempt was successful from the Falling Wedge Pattern (upper red line band) with reasonable volume due to Finance and Plantation Sector Play. However, i will still be caution unless 1595 or 1600 is cleared in order to test the next significant level of 1610 where a true breakout is justified if Sector Rotation Play continue.

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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) turned flat from heading down indicates bear strenght is still increasing will lower margin and still maintain below R1 indicates bearish sentiment could be reduced further for a week.

2) +DMI (blue line) still heading down with greater margin indicates bull strenght is decreasing with greater pace and not in favor yet.

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

Therefore, the summations of the 3 signals above is still implying Bear strength is still in favor. However , +DMI is still below -DMI lines with increasing spread which indicating the Bear strength is still in favor with increasing volitality. This indicates that weakness may still emerging and consolidating expected in coming weeks. The current volatility is improving but still low and continuous rise in ADX reading would justify a prominent uptrend to be developed.

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

Resistance - 1627, 1633, 1642, 1650, 1700, 1720

Immediate Resistance - 1595, 1600, 1610, 1615, 1619

Immediate Support - 1588, 1585, 1575-1577, 1570, 1564

Support - 1556, 1541, 1530, 1510, 1500

Daily Time Frame

To recap from session 62, there was high probability for Wave Z to be prolong as more minuette corrective waves emerged due to momentum change. Even sub minuette wave b had almost met the minimum criteria level of FIBO 61.8% at 1570, i won't rule out that sub minuette wave b could end lower in between FIBO region of 61.8 - 100% (1570 - 1552).

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No doubt that, KLCI had gone lower to 1565.74 to end sub minuette wave b and sub minuette wave c is underway which is bias to the upside. On the other hand, DT line has been revised based on few top retracement recently. Therefore, i am expecting that any upside could be shortlive towards DT line unless there is a formidable breakout above 1600 which supported by continuous Rotation Sector Play. Above all, i am still seeing a longer consolidation phase emerged before a clear signal to be seen.

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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 - 1615, 1620, 1625-1628, 1639, 1645, 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1590, 1595-1598, 1600, 1608-1610

Immediate Support - 1588, 1583, 1578, 1570, 1562-63, 1556-1551, 1538-1545

Support - 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

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