Europe News

Charts Predict: 'Year of Recovery' a Myth

Two-thousand-and-nine may not be shaping up to be the "year of recovery" that investors expected, as Sandy Jadeja, chief market strategist at ODL Securities, sees stocks and commodities both being weaker this year.

"The week ahead should be quite positive," Jadeja said of the FTSE-100 index Tuesday.

The UK index is in the final stages of a minor rally, but the bigger trend for the market is still lower, Jadeja said.

Weak Stocks, Commodities for '09: Chartist

Once the FTSE hits 4,665, it has the potential for a turnaround in the near term, according to Jadeja.

In the long term, the index is likely to re-test the lows, "if not lower", near the end of this quarter, he said.

Commodities are down 56 percent on the CRB index and have "reached a critical support level", indicating the end of the downturn and the beginning of a corrective rally for the commodities sector, Jadeja predicted.

"We're going to see a correction in commodities in 2009 but it could be short-lived. We're probably likely to see lower prices across the commodities board right through the second half of 2009," he told CNBC.

Gold will likely drop in the second half of the year, he added.