On Thursday, the long-waited expansion of Bollinger Bands Width has finally happened, and with the KLCI remains above the Bollinger Middle Band, the expansion of the Bollinger Bands suggests a bullish signal, and as a result, the KLCI gained 11.48 points or 0.9%. Provided that the Bollinger Bands is still expanding, the bullish biased movement of the KLCI is likely to carry on until the Bollinger Bands should contract.

Meanwhile, the 14, 21, 31 EMA long term dynamic support remains intact, and it is still supporting the KLCI uptrend. Therefore, the KLCI uptrend is still in place. Other than the Bollinger Middle Band dynamic support, the 1200 psychological level is also the support for the KLCI, while resistance is at 1248 WinChart Automatic Fibonacci Retracement.

As indicated by B, total market volume shrunk 7.6%, but still above the 40-day VMA level. This suggests that the overall market participation is relatively sufficient, which is a sign of improving inflow of buying interests, and therefore, provided that the volume is still above the 40-day VMA level, it would help to sustain the positive market sentiment.

As circled at C, the Stochastic is now reaching 100%, as the KLCI is advancing. The Stochastic is suggesting that the KLCI short term movement is likely to be over-heated, but still, provided that the Stochastic is still above 70% level, the short term bullish movement of the KLCI is still in place.

The expansion of the Bollinger Bands signaled a bullish movement for the KLCI and technically speaking, this is the beginning of a bullish movement, and provided the external factors remain unchanged, the bullish biased movement of the KLCI is expected to continue until the Bollinger Bands Width should contract or the Stochastic breaking below 70% level.

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