Weekly Update


Dow (23,539)

Dow closed the week with another new record high. Minor wave v of mini wave 7 is in progress. If the downward momentum is too great, mini wave 9 could be missing.

FBMKLCI (1,740)

KLCI is forming the mini wave 5 of its sub-wave i.

Dutaland Bhd (Rm 0.615)

A 4 sens (6.1%) drop on Friday has changed my earlier running a-b-c wave (iv) scenario to an expanding triangle a-b-c wave (iv) for Duta.

From the 30-minute interval chart, Duta has to start to move higher next Monday to form its wave (v).

With last week's sharp drop, another possibility for Duta has developed. There is a possibility that the 73 sens high set on October 30 is the end of its major wave 3. Duta is currently forming its major wave 4.

There is still a major wave 5 to go after the major wave 4 correction. Nothing to worry.

There is another bearish scenario as shown below, which I think is highly unlikely as the conditional sale and purchase agreement for the disposal of 11,579.31 hectares of Duta's plantation for cash of Rm750 million were signed on 30 October. With this disposal there will be 88 sens of cash per Duta share.

Only under one condition Duta can go back to 40 sens and below - the sale and purchase agreement is aborted.

Inari Amertron Bhd (Rm 2.79)

Inari is expected to move higher next week to continue with its sub-wave v formation.

Insas Bhd (Rm 0.97)

If Insas can start to move higher next week, then its current pullback is a 100% retracement mini wave 2.

And if Insas continues to move lower next week, then the current drop is the mini wave 3 of its wave c of wave (iv). Insas may go to a low of 90 sens.

Malayan United Industries Bhd (Rm 0.21)

Mui has a strong rebound last week. It went to an intra-day high of 24 sens.

It is likely that the 24 sens high marked the end of its wave B. Mui is expected to move lower to complete the wave C of its major wave 2. If it goes for 100% retracement, Mui might return to the 12 sens level.