KLCI waves 71 - Will Rotation Play to End KLCI Corrective Waves?

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Publish date: Sat, 14 Aug 2021, 05:04 PM

Weekly Time Frame

To recap from prior session 70, 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.

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For the past 1 week, KLCI was able to trade higher and close above 1500 at 1505.11 as supporting volume came from plantation sector on Friday. Even the volume are low, i see there is some upside divergence in short run but it still depend whether there will be continuous rotation sector play other than plantation sector next week. Therefore, 1488 is acting as an current support for any possible upside momentum. Let's check the temperature of the current trend.

TREND indicators

1) -DMI (red line) curved down with greater margin indicates bear strength is decreasing with higher pace but bearish momentum might continue since -DMI is still above new R1 line.

2) +DMI (blue line) curved up with greater margin indicates bull strength is increasing with greater pace and broke out last high to create an short term divergence to the upside BUT not in favor yet.

3) ADX (pink line) still heading up with lower margin implying that the volatility of the current trend is still increasing with slower 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 Decreasing spread which indicating the Bear strength is still in favor but Decreasing volatility. Even ADX has crossed above +DMI for 7 weeks, it indicates the bear momentum may continue and weakness may still emerging in coming weeks. With ADX reading is raising But slower pace and +DMI curved up with divergence signal, it is still indicating the development of bearish momentum has been justified and weakness is still ahead until there is a strong trend reversal signal detected. Therefore, I am still expecting KLCI will further consolidate Above the support range of 1484-1488 and will try to close above 1500-1505 before a clearer signal emerged. Nevertheless, caution is still required for any knee jerk reaction which could threaten further breakdown to test 1488 again and next support range of 1474-1476 to watch if 1488 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 - 1510, 1522, 1530, 1535, 1541, 1556, 1564, 1571, 1575-78, 1590, 1595, 1600

Immediate Support - 1500, 1484-1488, 1474-1476

Support - 1466, 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 70, no doubt that the weaknesses had driven KLCI to hit one of the target FIBO 161.8% (1484) and attempted to rebound above 1500 at once. Even it had 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 was strong catalyst to initiate an trend reversal from now.

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For the past 1 week, KLCI has been moving higher slowly after found some support from support range 1484-1488 and broke out from an consolidation which structured last 2 weeks ago. As mentioned wave c criteria had been met at 1483.73 in conjunction with sub minuette wave 5 of sub minuette wave v But Not wave C yet, so i will Assume the current momentum is bias to the upside with completion of sub minuette wave 1-2 and sub minuette wave 3 is still being constructed with micro wave extensions i-ii-iii formation as shown below. Currently, micro wave extension iv could consist of multiple complex micro waves w-x1-y-x2-z and micro wave z would be justified if 1514.52 penetrated.

On the other hand, i will leave wave C alone as i won't rule out that sub minuette wave v is still not out of wood yet if 1496.6 breached. Therefore, the target of sub minuette wave v extension FIBO 261.8% (1471.52) is still valid.

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 - 1508-1512, 1515, 1522.5, 1528. 1530, 1535, 1540, 1544-1548, 1556-1560, 1562-63, 1570, 1578, 1583, 1588, 1590

Immediate Support - 1500, 1495, 1490, 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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