KLCI waves 91 - IS THIS AN TRUE SOLID REVERSAL?

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Publish date: Mon, 03 Jan 2022, 01:48 AM

Weekly Time Frame

To recap from prior session 90, momentum had improved and KLCI had moved higher to close above the psychology level of 1500. However, the volume was significant low which indicated the strength of the upward momentum was not strong enough. Therefore, weekly SP line (1525) could be critical resistance to watch and penetration effect can initiate an follow through buying interest to the upside to test the Gap Resistance (1545.99-1559.66).

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For the past one week, an follow through buying interest emerged after the penetration of weekly SP line (1525) and momentum continued to close up the Gap Resistance (1545.99-1559.66) by selective blue chip buying interest. The Gap Resistance could turn as immediate support for consolidation. If the upward momentum continue, it could test ET1 or 1610 again.

Let's check the temperature of the trend.

TREND indicators

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

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

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

Therefore, the summations of the 3 signals above is still implying BULL strength is in favor. +DMI has crossed above -DMI for the first week indicating the BULL strength is in control but not firmed yet as ADX is showing sign of the volatility of current trend is getting slower. Although the Gap Down levels are is filled, I am still assuming KLCI is still in the huge consolidating phase in between revised ET1 and ET2 expanding triangle 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 - 1610, 1615, 1619, 1627, 1633, 1642, 1650, 1700, 1720

Immediate Resistance -1571, 1575, 1580, 1590, 1595, 1600

Immediate Support - 1564, 1546-1560 (Gap), 1538, 1531, 1525, 1515, 1505-1508, 1500, 1484-1488, 1474-1476, 1466

Support - 1452, 1447, 1436, 1407

Daily Time Frame

To recap from session 90, KLCI was able to move higher with low volume which indicated the current upward could be just an technical rebound without sufficient strength. Besides that, it had been resisted at daily SP line and assumed that there was no a solid trend reversal signal yet. In wave count perspective, micro sub minuette wave v was justified to end at 1475.37 in conjunction with sub minuette wave 5 of higher degree of sub minuette wave a as labelled. Since sub minuette wave a had been ended, the current upward movement could be the start of sub minuette wave b. If KLCI could penetrate above SP line, sub minuette wave b could end at 1528 (FIBO 38.2%) or the GAP resistance 1545.99 (Lower Gap) if the stronger momentum emerged.

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No doubt that the upward momentum continued after daily SP line was penetrated. Although the GAP resistance has been filled with sub minuette wave b exceeding the minimum wave count criteria of FIBO 61.8%, it may travel further up and end within the range of FIBO 61.8% to 100% (1560-1613). If it is true, sub minuette wave b is structuring with 5 wave structures and i am monitoring whether micro sub minuette 5th wave could be extended if momentum continue.

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 towards the potential target of 1387 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 -1608-1610, 1615, 1620, 1625-1628, 1639, 1645, 1650, 1662, 1679, 1685, 1700, 1720

Immediate resistance - 1566, 1570, 1573, 1581, 1590-1593, 1599-1602

Immediate Support - 1559.66 (Upper Gap) , 1556-1557, 1545.99 (Lower Gap), 1543, 1537, 1531, 1520-1522, 1515, 1510-1511, 1505

Support - 1500, 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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