Bursa Malaysia has tracked lower in three straight sessions, dropping more than 25 points, or 1.7%. The Kuala Lumpur Composite Index now sits just beneath the 1,610-point plateau, although it may stop the bleeding on Tuesday.
RHB Investment Bank Bhd (RHB Research) has maintained a bearish outlook on the FTSE Bursa Malaysia KLCI Futures (FKLI) as selling pressure intensified on Monday, causing a 10-point drop to 1,611.5 points. The FKLI briefly climbed to a high of 1,627 points at market open but reversed course, hitting a low of 1,607 points before closing at 1,611.5 points. This fresh "lower low" reinforces the bearish sentiment, as the index remains below its 50-day Simple Moving Average (SMA), with the downtrend gaining support from a downward-pointing Relative Strength Index (RSI).
RHB advises traders to keep short positions initiated on 4 October at 1,627.5 points, setting the stop-loss threshold at 1,639 points to manage risks. With immediate support marked at 1,600 points and a lower level at 1,550 points, the FKLI faces resistance at 1,639 and 1,657 points on the upside.
In contrast, RHB Research reports bullish momentum for the Crude Palm Oil Futures (FCPO), which closed RM95 higher at RM5,196 on Monday. After establishing a day low at RM5,058, FCPO climbed steadily to a high of RM5,202, maintaining a four-session streak of "higher high" candlesticks. An upward-pointing RSI further supports positive momentum, with RHB expecting further gains if FCPO breaks through the RM5,250 resistance level.
RHB advises holding long positions in FCPO from 20 September at RM3,947, with a revised trailing stop of RM4,800 to protect profits. Key support levels for FCPO stand at RM4,800 and RM4,600, while resistance levels are eyed at RM5,250 and RM5,500.
