LAST week, share prices on Bursa Malaysia traced out their uptrend paths, bucking the weak performances on the Wall Street and regional stock markets.

The Kuala Lumpur Composite Index (KLCI) staged a decisive breach of its major psychological resistance of 1,500 last Friday.

Once again, plantations stocks led the KLCI in re-writing its alltime high.

The KLCI hit an all-time high of 1,473.74 before easing off to close at 1,470.77 points last Monday.

Continuous buying support of plantation stocks sent the KLCI to four record highs last week.

The KLCI hit its all-time historical high of 1,521.56 before closing at 1,516.22 points last Friday.

Based on its recent trading behaviour, the KLCI managed to trace out a whopping gain of 71.19 points, or 4.93 per cent, to close at 1,516.22 points last Friday in just seven trading days in 2008.

Share prices on the Wall Street continued to unfold their technical pullbacks last week.

The Dow Jones Industrial Average closed at 12,606.30 points last Friday, giving a week-onweek loss of 193.88 points, or 1.51 per cent.

The tech stock heavy Nasdaq Composite Index fell in tandem with the DJIA. It closed at 2,439.94 points last Friday, posting a week-on-week loss of 64.71 points, or 2.58 per cent.

Tokyo stock market fell in tandem with the continuing technical pullbacks on the Wall Street.

The Nikkei 225 Index closed at 14,110.79 points last Friday, recording a week-on-week loss of 580.62 points, or 3.95 per cent.

The Hong Kong stock market continued to consolidate in step with the weak performances on the Wall Street.

The Hang Seng Index closed at 26,867.01 points last Friday, posting a week-on-week loss of 652.68 points, or 2.37 per cent.

The KLCI rallied to close at its all-time closing high of 1,516.22 points last Friday, posting a weekon- week gain of 49.55 points, or 3.38 per cent.

The FTSE Bursa Malaysia Second Board Index gained 121.58 points, or 1.79 per cent, to close at 6,926.33 points.

IJM Plantations Bhd staged a follow-through technical rally last week.

Its daily price trend closed at the week ’s high of RM3.88 last Friday, recording a week-on-week gain of 48 sen, or 14.12 per cent.

Here are the readings of some of its technical indicators: Moving Averages: IJM Plantations ’s daily price trend stayed above its 10-, 20-, 30-, 50-, 100- and 200-day moving averages.

Momentum Index: Its shortterm momentum index continued to stay above its neutral reference line.

On Balance Volume (OBV): Its short-term OBV trended above its 10-day moving averages.

Relative Strength Index (RSI): Its 14-day RSI continued to stay above the 80 per cent level. Its technical reading stood at the 87.90 per cent level at the market close last Friday.

Outlook

Last week, IJM Plantations played catch-up with its heavyweight plantation counterparts.

Its daily price trend rallied in tandem with the sharp rally of its heavyweight plantations stocks.

Chartwise, IJM Plantations’ monthly price trend is staging a gradual recovery from its recent base-building phase. It staged an overhead breakout of the neckline of its rounding bottom pattern for mation.

Its weekly price trend trended on its stair-stepped uptrend (See IJM Plantations’ weekly chart — A1:A2, A3:A4, A5:A6 and A7:A8).

Last Friday, its daily price trend staged a technical breakout of its overhead resistance (A7:A8).

Its daily price trend continued to trend above its intermediateterm uptrend (See IJM Plantations’ daily chart — B1:B2) last week. Its daily price trend staged a breakout of its overhead resistance (B5:B6) last Monday.

IJM Plantations’ daily, weekly and monthly fast MACDs (moving average convergence/divergence) continued to stay above their respective slow MACDs.

The bullish configuration of the three time-frame MACDs will continue to drive its price trend higher.

Its 14-day Relative Strength Index (RSI) stood at the 87.90 per cent level at the market close last Friday. Its 14-week RSI and 14- month RSI were at 80.36 and 86.07 per cent respectively.

IJM Plantations’ daily price trend is poised to rally to higher levels. However, the overbought conditions of its three time-frame RSIs may suggest that IJM Plantations ’ rally may slip into a meaningful consolidation soon.

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