KLCI waves 86 - HOW LOW KLCI COULD REACH?

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Publish date: Sun, 28 Nov 2021, 11:27 PM

Weekly Time Frame

To recap from prior session 85, KLCI had consolidated and still no reversal signal emerged as technical rebound was expected.

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For the past one week, selling momentum continued after 2 weeks of consolidation and broke down from the consolidation range. Besides that, the last immediate support 1515 was breached as well which indicated there could be continuous selling pressure in coming weeks. No doubt that, the prior gap down created is still enforcing weaknesses and caution is still required until a solid reversal to cover up the gap.

Let's check the temperature of the trend.

TREND indicators

1) -DMI (red line) curved up with consistent margin indicates bear strength is increasing with consistent pace.

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

3) ADX (pink line) is stagnant 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 fourth 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 revised 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 Gap (1545.99-1559.66) is able to be closed OR revised 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 - 1515, 1524, 1531, 1538, 1546-1560 (Gap), 1564, 1571, 1575, 1580, 1590, 1595, 1600, 1610, 1615, 1619, 1627

Immediate Support - 1505, 1500, 1484-1488

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

Daily Time Frame

To recap from session 85, KLCI had been consolidated below UT line as expected and still pending for clearer signal emerged. On wave counts perspective, sub minuette 4th wave was still being constructed with macro multiple complex waves w-x-y as labelled and wave y was still underway. Could sub minuette 4th wave ready to test gap resistance 1545.99 - 1559.66? Otherwise, there could be new extension waves emerged.

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For the past one week, a new catalyst has initiated another selling after 2 weeks of consolidation and broke down below SP line emerged. On wave counts perspective, wave D has been revised which ended at 1613.35 and formed by sub minuette wave abc as labelled. If it is valid, wave E is currently started with the existing sub minuette waves 1-2-3-4 and wave 5 is being structured with few possible targets as labelled.

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 on the run unless there is an new catalyst to drive KLCI to penetrate above revised 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 - 1515, 1522-1518, 1531, 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 - 1512, 1505, 1500, 1495, 1490

Support - 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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