Market Moving Charts (with short commentaries) 31 Dec 2009

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MIDF >>> FBM KLCI More Upside Next Week; Year End Target 1450

The market, which closed for three consecutive Fridays starting December 17 last year for public holidays, had restrained some of these investors from taking heavy positions over long weekends. The Malaysian bourse was also closed for the New Year weekend celebrations

FBM KLCI gains 45.2pc year-on-year

Bursa Malaysia was generally sideways on bargain-hunting interest offsetting profit-taking selling, with the bellwether FBM KLCI ending the week marginally firmer. It finished the last day of this year at 1,272.78, against 876.75 on Dec 31, 2008. Year-on-year, the key index surged a massive 396.03 points, or 45.2%.

On a Thursday-to-Thursday basis, the FBM KLCI climbed 8.84 points, or 0.7% to 1,272.78, versus 1,263.94 on Dec 24.

On the foreign front, the New York Stock Exchange's Dow Jones Industrial Average continued to stay above its major psychological support of 10,000 points.

The Dow closed down - 120.46 (-1.14%) points at 10,428.05 on Thursday, giving a four-day loss of 92.05 points, or 0.87 per cent.

The immediate upside objective will be to re-test the recent peak of 1,288.42, If buying is sustainable, it may even challenge the heavy barrier of 1,300-1,305 points, of which a successful clearance would signal the beginning of the traditional Lunar New Year rally. The next upper hurdle is envisaged at 1,332 points.
Initial support is seen at 1,255 points, followed by the 1,248 points line. Crucial floor is pegged at the 100-day simple moving average, resting at 1,232 points.

Crude oil prices rose to a five-week high over US$79 a barrel on signs of global economic recovery and US stocks edged higher overnight, lifted by robust US retail sales during the key holiday shopping season, trading at home turned volatile the following day, tracking the indecisive market movements in the Asia-Pacific region.

March Soybean Oil closed up 86 pts. at 40.78.
March soybean oil gapped up and closed sharply higher on Thursday as it extended the rally off last week's low. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term.

If March extends this week's rally, December's high crossing at 41.74 is the next upside target. Closes below Monday's gap crossing at 38.95 would confirm that a short-term top has been posted.

First resistance is today's high crossing at 40.96. Second resistance is December's high crossing at 41.74. First support is today's gap crossing at 39.95. Second support is the 10-day moving average crossing at 39.28.

WISHING ALL TRADERS

A WEALTHY & HEALTHY 2010

HAPPY NEW YEAR