Bursa Malaysia moved back to the upside again on Thursday, one day after ending the two-day winning streak in which it had picked up almost 6 points or 0.4 percent. The Kuala Lumpur Composite Index now rests just above the 1,640-point plateau although it figures to head south again on Friday.

RHB Investment Bank Bhd (RHB Research) has advised maintaining short positions on the FTSE Bursa Malaysia KLCI (FKLI) as the index climbed above the 50-day simple moving average (SMA) line, closing at 1,646 points. The recent positive price movement indicates growing bullish momentum, but the Bearish Marubozu candlestick formed on 2 October continues to apply downward pressure on the index. As long as the FKLI remains below the resistance level of 1,657 points, the overall technical outlook remains bearish. Traders are advised to hold short positions initiated on 4 October at 1,627.50 points. Key support levels are pegged at 1,600 and 1,550 points, while the nearest resistance stands at 1,657 and 1,675 points.

Regarding crude palm oil futures (FCPO), RHB Research has recommended maintaining long positions, despite the market undergoing a fresh correction. On Thursday, the FCPO closed at RM4,233 after a RM19 decline. While the commodity is retracing towards immediate support at RM4,150, the formation of a Bullish Marubozu on 2 October suggests that the bulls retain a technical advantage as long as prices remain above the critical RM4,000 support. Traders are encouraged to hold long positions initiated on 20 September at RM3,947, with the stop-loss placed at RM4,000. Resistance levels are set at RM4,400 and RM4,650.

The overall outlook for both indices suggests cautious trading with a bias towards maintaining the current positions unless significant resistance or support levels are breached.