Bursa Malaysia on Thursday wrote a finish to the four-day winning streak in which it had advanced more than 30 points or 2 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,625-point plateau although it's expected to bounce higher again on Friday.

RHB Investment Bank Bhd (RHB Research) has maintained its recommendation for short positions on the FTSE Bursa Malaysia KLCI Futures (FKLI), as the index faces fresh selling pressure. The FKLI dropped by 15.5 points on Thursday, closing at 1,621 points after testing the 1,640-point intraday high. The index's movement indicated a firm resistance level at 1,639 points, marking the start of a consolidation phase below this threshold.

Should selling pressure continue, RHB Research anticipates a potential decline toward the 1,600-point support level. However, if the index breaches the 1,639-point resistance, the Bearish Marubozu pattern, observed since 2 October, could weaken, potentially shifting market sentiment more positively. Nonetheless, RHB Research maintains a bearish trading stance until the index breaks past this resistance.

Traders are advised to retain the short positions initiated on 4 October at 1,627.5 points. The stop-loss level has been adjusted to 1,639 points from an earlier 1,657 points, to mitigate trading risks. Key support levels remain at 1,600 points, with further support at 1,550 points. On the upside, resistance is set at 1,639 points, followed by 1,657 points.

In contrast, RHB Research has reaffirmed its positive outlook on the Futures Crude Palm Oil (FCPO) market, which continued its upward trend on Thursday. The FCPO rose by RM35 to close at RM4,952, marking a second consecutive "higher high" bullish candlestick. This positive momentum signals that bulls remain in control, with a potential breakout at the RM5,000 resistance level, which could strengthen the bullish setup further.

Immediate support for the FCPO is projected at RM4,750, providing a buffer against any profit-taking. RHB Research highlights that the technical outlook for FCPO remains bullish, and an upside breakout could be expected in the near term.

Traders are recommended to maintain their long positions, initially taken on 20 September at RM3,947, while setting a trailing stop at RM4,600 to manage downside risks. The first support level has been adjusted to RM4,750, with secondary support at RM4,600. Resistance levels are held at RM5,000, followed by RM5,250.