FGV (5222), EG (8907), RCECAP (9296), DENKO (8176)

Felda Global Ventures Holding Bhd (Rm 2.41)

FGV finally surged above the Rm 2.30 level today to start the mini wave 3 of its sub-wave v of wave (iii).

EG Industries Bhd (Rm 0.835)

I have two possible wave-counts for EG depending on whether it is going to shoot above the 90 sens level or to drop below the 82.5 sens level.

If EG goes below 82.5 level in the next few days as show below, very likely it will go below 75 sens for a bigger magnitude major wave 4.

It has a possible low of 65 sens, the top of major wave 1.

But if it can hold above the 82.5 sens level, has a rebound and can move above the 90 sens level, then the wave-count is as shown below.

 The next up will be the wave (iii) of its major wave 5.

RCE Capital Bhd (Rm 1.26)

RCE turned out to be more bullish than the two possible scenarios that I have mentioned in my article posted on 11th August. I was expecting a higher degree sub-wave i-a-b-c-ii formation, but today's candlestick showed that it is mini wave 1-2 and minor wave i-ii. The mid-August closing high of Rm1.16 is not sub-wave i, it is only mini wave 1.

The current run-up is minor wave iii of mini wave 3 of sub-wave i.

Very bullish in deed.

Denko Industrial Corporation (Rm 0.365)

One of my friend asked me, "how high the current sub-wave iii can go?"

Usually I use the magnitude of sub-wave i as a guide. Sub-wave i moved from 26 sens to 44.5 sens, the gain is 18.5 sens or +71%.

a) Minimum target is 32+18.5 = 50.5 sens

b) Another possible target is a gain of 71% = 32x1.71 = 54.5 sens

c) If sub-wave iii is longer than sub-wave i by fibonacci ratio of 1.618, then another possible target is 32 + 18x1.618 = 61 sens

d) If  iii is longer than i by fibonacci ratio of 2.618, then the target = 32 + 18x2.618 = 79 sens.

Please remember that this is only a guide. One must always watch out for failure waves. Chart reading is an art not hard science. One can never see the final wave form until it has happened.

"To buy is easy but to sell need great determination and discipline, especially in a down market."