KLCI waves 66 - Is True Reversal Emerged After KLCI Finally Hit Diamond Formation Target at 1501 ?

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Publish date: Sun, 11 Jul 2021, 06:48 PM

Weekly Time Frame

To recap from prior session 65, the selling pressure emerging which lead KLCI to breach the critical support of 1556 and closed at 1533.35 which is around the lower band of Falling Wedge Pattern which could act as support for any possible rebound and 1530 was the level to watch to sustain before any clear signal emerge.

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For the past one week, 1530 was failed to hold and breached which failing the Falling Wedge Pattern as shown. There were once that the last immediate support of 1510 was breached and went as low as 1501 before rebound to close at 1520.58 currently. I am expecting there would be consolidation above the psychological level of 1500 before a clear signal emerge whether the rebound can be sustainable. 1535 is the level to watch for any possible trend reversal event.

TREND indicators

1) -DMI (red line) still heading up with consistent margin indicates bear strenght is still increasing will consistent pace and bearish momentum will might continue since -DMI is still above R line.

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

Therefore, the summations of the 3 signals above is still implying Bear strength is still in favor. +DMI is still below -DMI lines with increasing spread which indicating the Bear strength is still in favor with increasing volitality. Since ADX has crossed above +DMI for 2 weeks consistently, it indicates the bear momentum might continue and weakness may still emerging and further consolidating expected in coming weeks. If-DMI continue to raise consistenly and ADX reading raise above 20, we could see current rebound would be shortlive and weakness is still ahead unless KLCI could close above 1535 after consolidation phase in coming weeks to justify a reversal trend to be developed.

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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.

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

Resistance - 1610, 1615, 1619 , 27, 1633, 1642, 1650, 1700, 1720

Immediate Resistance - 1521, 1530, 1535, 1541, 1556, 1564, 1571, 1575-78, 1590, 1595, 1600

Immediate Support - 1510, 1500, 1490, 1484

Support - 1466, 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 65, i won't rule out that it would end lower at 1484 (FIBO 161.8%) with sub minuette waves extension or the DIAMOND FORMATION target at around 1500 (As in Diagram) since SP line had been breached. End of wave c/C was not justified since the index was still below SP line and any rebound which could be shortlive since weak momentum indicated in Monthly and Weekly Time Frame.

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For the past 1 week, market sentiment remained weak and triggered another sold off to breach the immediate support of 1530 and hit as low as 1501.21 which met the criteria of the DIAMOND FORMATION target at around 1500 (Diagram labelled at Session 65). As mentioned before, sub minuette waves extension could incur if either targets 1484 or 1500 had hit. No doubt that, the sub minuette wave v extension incurred and end at 1501.21 which met the sub minuette extension criteria of FIBO 161.8% to complete the entire sub minuette wave (i)-(ii)-(iii)-(iv)-1-2-3-4-5 (v) as labelled in the diagram below. Although one of the criteria met, i won't rule out that the sub minuette wave v extension could end furhter down to meet the level of FIBO 261.8% (1471.52) or sub minuette wave c's FIBO 161.8% (1484) if the selling pressure continue since weak momentum still being indicated in Monthly and Weekly Time Frame. Unless KLCI could raise above 1552.07 to justify the end of wave c/C from now after consolidaiton phase to be expecting.

As expected, a prolong corrective waves will prolong Wave Z since wave C is still yet to be justified.

<Diagram of sub minuette wave (i)-(ii)-(iii)-(iv)-1-2-3-4-5 (v)>

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

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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 - 1595-1598, 1600, 1608-1610, 1615, 1620, 1625-1628, 1639, 1645, 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1526. 1530, 1535, 1540, 1544-1548, 1556-1560, 1562-63, 1570, 1578, 1583, 1588, 1590

Immediate Support - 1518, 1510, 1500, 1490

Support - 1475, 1461-1466, 1452, 1435

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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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