LAST week, share prices on Bursa Malaysia rebounded in tandem with the technical rebounds on the New York and Asian stock markets.

The Kuala Lumpur Composite Index (KLCI) rebounded from its intra- week low of 838.47 on Monday to close at the week's high of 856.82 on Friday, giving an intra-week trading range of 18.35 points.

Wall Street's seven consecutive trading days of rebounds provided the impetus for the local bourse to rise in tandem. Key heavyweight index-linked counters led the market rebound.

The KLCI closed higher at 856.82 on Friday, giving a week-on- week gain of 13.37 points, or 1.59 per cent.

Among the other indices, the FBM Second Board Index rose 25.96 points, or 0.68 per cent, to 3,839.18 while the FBM Mesdaq Index gained 35.67 points, or 1.22 per cent, to 2,953.14.

Share prices in New York rebounded in earnest last week after the market's recent pullbacks. The Dow Jones Industrial Average closed at 7,278.38 on Friday, giving a week-on-week gain of 54.40 points, or 0.75 per cent.

The tech stock heavy Nasdaq Composite Index rebounded in tandem with the broader market sentiment. The Nasdaq Composite Index closed higher at 1,457.27 points on Friday, giving a week-on-week gain of 43.77 points, or 3.10 per cent.

The Hong Kong stock market moved in step with the Dow average last week. The Hang Seng Index closed at 12,833.51 on Friday, giving a week-on-week gain of 307.71 points, or 2.46 per cent.

The Tokyo stock market, meanwhile, remained firmly above its critical support of 7,000 last week. The Nikkei 225 Index closed higher at 7,945.96 on Thursday, posting a week-on-week gain of 376.68 points, or 4.98 per cent.

On Bursa Malaysia, IJM Corporation Bhd staged a technical rebound in tandem with key heavyweight index-linked counters. Its daily price trend closed at RM3.90, recording a week-on-week gain of 32 sen, or 8.94 per cent.

Here are the readings of some of its technical indicators:

Moving Averages: IJM's daily price trend stayed above its 10-, 20, 30-, 50- and 100-day moving averages. It continued to stay below its longer term 200-day moving averages.

Momentum Index: Its short-term momentum index continued to stay above its neutral reference line.

On Balance Volume (OBV): Its short-term OBV continued to stay below its 10-day moving averages.

Relative Strength Index (RSI): Its 14-day RSI had since stayed above the 50 level. Its technical reading stood at the 66.40 per cent level at the close on Friday.

Outlook

IJM's technical rebound was riding on market talk of the company in conjunction with a foreign partner landing a major infrastructure project. It remains to be seen as to whether the market talk has any truth or is just speculation.

Chartwise, IJM's monthly price trend gave up all of its multi- year gains in 2008. In 2008, IJM's monthly price trend fell from its intra-year high of RM8.90 to its intra-year low of RM2.35, giving an intra-year trading range of RM6.55.

Earlier, its weekly price trend fell through the support of the neckline of its double-top pattern formation. (See IJM's weekly price trend A1:A2). It had since stepped out of its intermediate- term downtrend (A3:A4).

IJM's daily price trend staged a decisive technical breakout of its intermediate-term downtrend (See IJM's daily price chart B1:B2) before moving higher along its intermediate-term uptrend (B3:B4)

Its daily and weekly fast MACDs (Moving Average Convergence Divergence indicators) continued to stay above their respective slow MACDs. Its fast monthly MACD continued to stay below its slow monthly MACD.

IJM's 14-day Relative Strength Index (RSI) stood at the 66.40 per cent level last Friday. Its 14-week and 14-month RSI were at the 53.08 and 38.07 per cent levels respectively.

Given the strengthening of its various technical indicators, IJM's daily price trend is on track to take out its overhead resistance of RM4.00 before scaling new highs.

The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

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