As indicated by A, the FBM KLCI ended 5.08 points higher on Friday to close at 1178.74 points; however, the Bollinger Bands Width contracted 23%. Despite the KLCI returned to above the Bollinger Middle Band, the KLCI has not started an uptrend for the Bollinger Bands Width is still contracting.

Generally, the Bollinger Bands Width has to re-expand in order to suggest an beginning of a new trend, and contraction of the Bollinger Bands Width suggests that the KLCI is still consolidating while preparing for a new movement. If the Bollinger Bands Width should re-expands with the KLCI above the Bollinger Middle Band, it would be a bullish movement signal; on the other hand, if the Bollinger Bands Width should re-expand with the KLCI below the Bollinger Middle Band, it would be a bearish biased movement signal.

As indicated by B, total market volume traded only increased 3.5%, and therefore, it is still below the 40-day VMA level. This shows that the overall market participation is still low, as investors are still staying on the sidelines while waiting for fresh leads.

As circled at C, the Stochastic is still above 70% level, which is the short term bullish territory. Therefore, the short term movement of the KLCI is on the positive side while waiting for the confirmation of the bullish Bollinger Bands signal.

With the support of the 14, 21, 31 EMA long term uptrend dynamic support, the uptrend for the KLCI is still intact. Currently, the KLCI is at its breaking point to continue its uptrend, while waiting for the re-expansion of the Bollinger Bands Width, and of course, the KLCI has to stay above the Bollinger Middle Band when the Bollinger Bands Width re-expands, or else, there is a risk of forming a downtrend.

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