Dow continues to form its major wave (7)
KLCI is forming the sub waves of its wave (iii). Currently it is either on its sub wave ii
or it has yet to complete its sub-wave i if KLCI continues to move higher in the next few days.
Felda Global Venture Holding Bhd (Rm 1.87)
If the BN government is pushing the markets higher in preparation for an early election, one stock that it has to push higher is Felda Global Ventures Holding Bhd (FGV).
FGV was listed in June 2012 with IPO price of Rm4.55. Bank loans were provided to the poor Felda settlers to purchase FGV at Rm4.55.
On the first day of listing the price went up to Rm5.30 and subsequently it went to a high of Rm5.50 before starting its long decline.
Since the votes from Felda settlers are crucial to the BN, I guess they have no choice, they have to push FGV higher to please the Felda settlers.
From its August 2015's low of Rm1.19, FGV started to rebound and by May 2016 it has completed its wave (i)-(ii). Currently it is forming its wave (iii).
The strong run-up with high volume in the last 6 trading days is the sub-wave iii of its wave (iii). Very likely sub-wave iii is about to complete. The next pullback can be the sub-wave iv.