KLCI waves 80 - COULD KLCI PENETRATE 1610 THIS TIME?

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Publish date: Sun, 17 Oct 2021, 12:56 PM

Weekly Time Frame

To recap from prior session 79, sentiment gradually improved and KLCI rebounded back into Three Black Crows Candlestick region which reduced the downward pressure after the realization of the bearish candle formation. However, we would see KLCI would be in short consolidating below the lower gap resistance at 1573.78 before clearer signal emerged.

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For the past one week, bargain hunting continued driving KLCI to penetrate lower gap resistance at 1573.78 and moving higher but resisted and closed below at ET1 line. However, 1610 is still the major level to watch for possible continuous trend to the upside. Otherwise, it could retrace from current level before clearer signal emerged. Let's check the temperature of the trend.

TREND indicators

1) -DMI (red line) continue heading down with consistent margin indicates bear strength is decreasing with consistent pace.

2) +DMI (blue line) continue heading up with consistent margin indicates bull strength is increasing with consistent pace.

3) ADX (pink line) is still decreasing with consistent margin implying that the volatility of the current trend is not firmed yet.

Therefore, the summations of the 3 signals above is still implying Short Term Bull strength is in favor. +DMI has crossed above -DMI for the first week indicating the Bull strength is in favor but slower ADX has indicated the current trend is not firmed yet. Since KLCI has not penetrated above ET1 yet, I am still expecting KLCI will be consolidating in between ET1 and ET2 in Medium Term as the current rebound is not justified as solid trend reversal. Therefore, caution is still required unless ET1 or 1610 could be penetrated to the upside CONVINCINGLY.

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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. Besides that, wave D has been justified to end at 1604.98 and wave E might be in its way to the downside. Therefore, Wave Z is still not been realized yet. Subsequent minor waves would be elaborated further in daily time frame.

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

Resistance - 1633, 1642, 1650, 1700, 1720

Immediate Resistance - 1600, 1610, 1615, 1619, 1627

Immediate Support - 1595, 1590, 1580, 1575, 1571, 1564, 1557, 1548, 1533, 1530

Support - 1520-23, 1510, 1505, 1500, 1484-1488, 1474-1476, 1466, 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 79, momentum had changed where new wave structure emerged in sub minuette waves a/b. Therefore, micro sub minuette wave Y had been revised as 5 waves structure as labelled. Although there was an minor double bottom after the bullish divergence signal, i was still holding the prior assumption with wave E was still underway and believe moving towards ET2 gradually with a possible another micro sub minuette complex waves emerged.

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For the past one week, buying interest emerged to initiate an continuous momentum to the upside until ET1 line was tested and closed just beneath. In wave count perspective, the current wave structure has being formed in 5 sub minuette wave (1-2-3-4-5) as labelled and sub minuette 5th wave extension is being constructed with micro sub minuette 4th wave (i-ii-iii-iv) is still underway. However, the PTI reading for incoming micro sub minuette 5th wave is only 13 which indicated the incoming micro sub minuette 5th wave could be "Truncated" or "Failed". Therefore, micro sub minuette 5th wave could be ended soon with an Throw Over effect above ET1 line before consolidation emerge. If this is true, we would see KLCI to consolidate in between ET1 and ET2 line again.

As usual, i am still leaving Wave Z alone since the assumption of new corrective wave above is still yet to be justified with wave E is still in the run unless there is an new catalyst to drive KLCI to penetrate above ET1 or 1610 Convincingly for new wave structure.

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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 convincingly unless Wave X1 (1646.24) is penetrated. Thus, Higher Degree of Correction is still being prolong by these Multiple Complex Waves WXYXZ.

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 - 1600, 1608-1610, 1615, 1620, 1625-1628

Immediate Support - 1590-1593, 1581, 1573, 1570, 1562-63, 1556-1557, 1546-1548, 1536, 1530, 1522, 1515, 1512, 1505, 1500

Support - 1495, 1490, 1484-1488, 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

Discussions

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

ahbah

Penetrate 1610 this time ? Sure can lah ! Most likely, it is just a stroll in a

park onli !!!

2021-10-17 14:38

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