KLCI waves 84 - COULD KLCI CLOSE THE GAP ?

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Publish date: Mon, 15 Nov 2021, 01:32 AM

Weekly Time Frame

To recap from prior session 83, no doubt that weakening momentum initiated another selling pressure and created an gap down effect which indicated weaknesses would still emerging for coming weeks.

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For the past one week, weakening momentum continued but rebound from 1515. These could just an technical rebound with no solid reversal price action signal yet. Let's check the temperature of the trend.

TREND indicators

1) -DMI (red line) continued heading up with lower margin indicates bear strength is increasing with lower pace.

2) +DMI (blue line) continued heading down with lower margin indicates bull strength is decreasing with lower pace.

3) ADX (pink line) is decreasing with consistent margin implying that the volatility of the current trend is still low and weak.

Therefore, the summations of the 3 signals above is still implying Bear strength is in favor. -DMI has crossed above +DMI for the second week indicating the Bear strength is in favor but slower ADX has indicated the current trend is still weak and not firmed yet. Since Gap Down levels are still yet to be tested, I am still expecting KLCI to be consolidating in between ET1 and ET2 in Medium Term which bias to the downside as any rebound would not be 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 - 1538, 1546-1560 (Gap), 1564, 1571, 1575, 1580, 1590, 1595, 1600, 1610, 1615, 1619, 1627

Immediate Support - 1531, 1524, 1515, 1505, 1500

Support - 1484-1488, 1474-1476, 1466, 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 83, selling pressure continued for initiating another gap down effect with greater margin. Although KLCI had been supported well above UT line as mentioned, the gap effect was still indicates there was still underlying weaknesses emerged. On wave counts perspective, sub minuette 3rd wave had been completed and ended at 1526.04. Currently, i was seeing sub minuette 4th wave was still being constructed with an possible minuette complex waves before sub minuette 5th wave emerged to the downside in conjunction with UT line breaching and possible extension waves incurred. I was watching closely whether KLCI was able to rebound and close up the gap created 1545.99 - 1559.66 where new wave structure could emerged.

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For the past one week, weakness emerged as expected and drove KLCI to breach UT line to the downside. Even there was a rebound towards UT line, i am expecting KLCI would consolidate below UT line and may returned back above UT line to test gap resistance 1545.99 - 1559.66. On wave counts perspective, there is a revised counts because of momentum has changed which sub minuette 3rd wave had been revised to end at 1516.75 instead of 1526 as labelled. Currently, sub minuette 4th wave is being constructed which bias towards upward and could end at around the gap resistance.

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 - 1537, 1543, 1545.99 (Lower Gap), 1556-1557, 1559.66 (Upper Gap) ,1566, 1570, 1573, 1581, 1590-1593, 1599-1602, 1608-1610, 1615, 1620, 1625-1628

Immediate Support - 1531, 1520-1518, 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

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