KLCI waves 70 - Will KLCI 's Correction To Be Extended?

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Publish date: Mon, 09 Aug 2021, 01:55 AM

Weekly Time Frame

To recap from prior session 69, a formidable trend had been justified to the downside after the consolidation breakdown incurred when 1515 breached as weaknesses sentiment continue. Next, 1488 would be the next support to watch whether the down pressure would continue to test the critical support of 1466 as shown.

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For the past 1 week, KLCI faced continuous downward pressure and 1488 support was tested. However, KLCI was able close well above 1488 at 1489.80. To reiterate, the next critical support is 1466 to watch and let's check the temperature of the current trend as below.

TREND indicators

1) -DMI (red line) continue heading up with lower margin indicates bear strength is increasing will lower pace and bearish momentum might continue since -DMI is still above new R1 line.

2) +DMI (blue line) continue heading down with lower margin indicates bull strength is decreasing with lower pace BUT not in favor yet.

3) ADX (pink line) still heading up with greater margin implying that the volatility of the current trend is still increasing with greater pace. Besides that, the reading is still raising after broke 20 indicates the current trend continue to be firmed.

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 6 weeks consistently, it indicates the bear momentum may continue and weakness may still emerging in coming weeks. With ADX reading is still raising with greater pace after breaching 20 with -DMI heading up, it indicates the development of bearish momentum has been justified and weakness is still ahead until there is a trend reversal signal detected. Even there were a swift rebound to 1500 as expected, I am expecting KLCI will further consolidate above the support range of 1484-1488 before a clearer signal emerged. However, caution is still required for any knee jerk reaction which could threaten further breakdown to test 1466 if another support range of 1474-1476 breached.

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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 - 1490, 1500, 1510, 1522, 1530, 1535, 1541, 1556, 1564, 1571, 1575-78, 1590, 1595, 1600

Immediate Support - 1484-1488, 1474-1476

Support - 1466, 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 69, there was minor revision of the sub minuette wave v extension where extension within extension structure has been formed along with the magnitude of the momentum changed. The momentum changes was because of two Triangle Patterns with complex wave had broken down and breached below 1501.21 without forming sub minuette wave d. As labelled, sub minuette wave 3 of sub minuette wave v was ended at 1501.21 instead and sub minuette wave 4 of sub minuette wave v ended at 1529.65. I won't rule the breakdown momentum would continue since weaknesses signals were still emerged from Weekly Time Frame and led to two prior targets as sub minuette wave c's FIBO 161.8% (1484) or sub minuette wave v extension FIBO 261.8% (1471.52). However, we had to keep a closer watch on these 2 levels which would provide some support for initiate a strong rebound in short run at least.

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For the past 1 week, no doubt that the weaknesses driven KLCI to hit one of the target FIBO 161.8% (1484) and attempted to rebound above 1500 at once. Even it has met the criteria to end wave c at 1483.73 in conjunction with sub minuette wave 5 of sub minuette wave v, i won't rule out that the sub minuette extension waves could be prolong if downward momentum continue unless there is strong catalyst to initiate an trend reversal from now. Therefore, the target of sub minuette wave v extension FIBO 261.8% (1471.52) is still valid and i will leave some room for these extension wave to be formed convincingly.

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

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 convincingly. 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 penetrated 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 - 1490, 1495, 1500, 1512, 1515, 1522.5, 1528. 1530, 1535, 1540, 1544-1548, 1556-1560, 1562-63, 1570, 1578, 1583, 1588, 1590

Immediate Support - 1484-1488, 1475

Support - 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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