Introduce prediction by pausing and asking children what they think will come out of the bag.
Have an actual bag in which you can place objects so children can imagine them changing into something else.
Use language to demonstrate the difference between the mundane (before it goes into the bag) and the fantastical (that which comes out of the bag.)
How does the girl feel? Look at how her emotions change as she travels through the story. What changes her emotions?
Write your own story. ......with the Yellow Bag. What will you put in your bag? Where will you open it? What will come out? How does this make you feel?