Dow (21,349)
Dow is at the tail end of its wave (v) and if its major wave (7) has only five waves, the end of wave (v) will mark the end of major wave (7). Wave (8) correction will be about 15%.
If the mini wave 4 of sub-wave v of wave (v) has the same magnitude as mini wave 2, Dow will take another week or two to finish this mini wave 4. The duration for mini wave 5 is hard to predict. It can have a swift and sharp one week up or it can have a slow four weeks climb.
It is also possible that mini wave 4 has ended on last Thursday when Dow reached an intra-day low of 21,197. If Dow were to move higher from here with more record highs to 21,600 level or higher to complete its mini wave 5, be careful that this could be the end of its major wave (7) as the following major wave (8) correction is about 15%.
FBMKLCI (1,763)
With last Friday's intra-day low reaching 1,755, it becomes possible that the early June high of 1,791 is the end of wave B and wave C's correction has already started. I expect this wave C to end around 1,520 level for a 15% pullback.
If the next technical rebound can go to 1,780 level, KLCI will form a bearish 'head and shoulder' reversal pattern. The next time it punches through the neckline at 1,760 level, KLCI is likely to drop at a faster pace.
Gadang Holdings Bhd (Rm 1.31)
Gadang may have one more surge to go to complete its wave (v) and its major wave 3.
But if its starts to move lower from its current 1.30 level, that will mark the starting of its major wave 4 correction. Rm 0.80 could be the target.
Insas Bhd (Rm 1.07)
There is this possibility that Insas has already completed its mini wave 5, a failure mini wave 5, if Insas continues to move lower next Monday and Tuesday. And once it drops below 1.04 level, it will go all the way to 0.90 to complete its wave (iv).
However, if Insas can move higher next week, then the pullback on last Friday is the minor wave ii of its mini wave 5. If mini wave 5's magnitude is the same as that of mini wave 3, mini wave 5 is likely to end at 1.20 level.
