As indicated by A, the Bollinger Band width expanded 28% with the KLCI situated above the Bollinger middle band. This suggests an increase of the upside volatility of the 2nd board index, and provided that the Bollinger Band width could continue expand with the 2nd board index remains above the Bollinger middle band, the 2nd board is set to test the 104.6 resistance.

Despite the slight bullish signal from the Bollinger Bands, volume for the 2nd board remains below the 40-day VMA level. Therefore, the sustainability of this bullish signal is still questionable. Unless the volume can break above the 40-day VMA level, the bullish Bollinger Bands signal is likely to be a short one.

As circled at C, the Stochastic %K touches 100% level while the %D line breaks above the 70% level. This confirms the short term bullish signal. If the Stochastic should stay above the 70% level, the short term market movement for the 2nd board index is bullish biased.

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