As indicated by A, the Bollinger Bands Width expanded 16% on Wednesday, with the KLCI above the Bollinger Middle Band, therefore, the Bollinger Bands Width is now suggesting a bullish biased signal. Meanwhile, the KLCI also breaks above the T1 downtrend line by margin.

Nevertheless, the Bollinger Bands Width is only showing an early signal and to sustain this bullish signal, the Bollinger Bands Width has to continue its expansion. Immediate support for the KLCI is now at the T1 line followed by 800 points level.

As indicated by B, total market volume only increased 12.1%, despite the KLCI ended higher. Therefore, total market volume is still below the 40-day VMA level, suggesting the market participation is still insufficient.

As circled at C, the Stochastic is now above 70% level, which is the short term bullish region. If the Stochastic should remain above 70% level, the short term market movement is expected to be bullish biased. In conclusion, the bullish Bollinger Bands signal on Wednesday was not confirmed with a significant increased of volume, but it is still a positive sign for the market. As long as the KLCI could maintain above the Bollinger Middle Band with the Bollinger Bands Width continue to expand, it would help lifting the market sentiment, thus volume is likely to increase.

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