Stocks on Bursa Malaysia ended steadier yesterday with investors nibbling in lower liners and penny stocks. The FBM KLCI inched up 0.3 point to end at 1,522.29 after trading in a narrow range. Gainers led losers by 437 to 385 while 300 counters were unchanged. Turnover rose to 1.910 billion shares worth RM1.941 billion from 1.858 billion shares valued at RM1.872 billion.

The FBM KLCI opened 0.04 point higher at 1,522.03 and climb to the intra-day high of 1,523.94 within the first thirty minutes, and profit-taking activity set in to push the key index to the intra-day low of 1,518.80 at late morning before rebounding gradually to close almost unchanged. Chart wise, the FBM KLCI formed a Doji candlestick which indicates uncertainty and indecision of market direction. With a spinning-top and a Doji occurring over the last two days, the market gave a signal that the FBM KLCI is likely to continue with its range-bound consolidation process. Immediate overhead resistance is at 1,525 while the downside support level is at 1,518, and a breakout in either one direction will see the key index continue moving in that direction.

MACD was flat, but its histogram continued to turn shorter, indicating a continued loss in the index’s momentum. Nonetheless, as the index is still above the zero-line, it indicates consolidation. RSI (14) was almost flat at 63.6, indicating consolidation with a bullish undertone. Stochastic was higher at 86.4, indicating the short term up cycle is still intact. Readings from the indicators showed that the FBM KLCI is lacking in momentum and is heading for a short term consolidation.

The trend of the FBM KLCI remained up. However, as the key index already showed signs of lacking in momentum, it is likely to go into a range-bound consolidation mode. Immediate overhead resistance zone is at 1,525 to 1,530 while the downside support zone is at 1,518 to 1,513. As the volume remained active, the overall market will continue with the rotational play on the lower liners and penny stocks while the key index-link stocks consolidate. 

Overnight, the Dow fell -13.02 points or -0.10% to close at 12,449.45. Today, the FBM KLCI is likely to trade within a range of 1,514 to 1,530.

This week's expected range: 1479 – 1549

Today’s expected range: 1514 – 1530

Resistance: 1525, 1527, 1530

Support: 1514, 1516, 1519

Stocks to watch: SUPERMX, MUDAJYA, HAIO