Dish TV features as Bollinger band squeeze pick

Dish TV India was picked by our Bollinger Band squeeze scanner which suggests that the stock is near a consolidation breakout. The Bollinger Band squeeze occurs when volatility falls to low levels and the Bollinger Bands narrow. A volatility contraction or narrowing of the bands can foreshadow a significant advance or decline.

After the fall from all-time high to 52-week low, the stock gave a sharp rise of up to its multiple resistance zone of Rs. 42- 43. The stock could not breach the zone and from the last six weeks hovering around the resistance zone. As of now, the price action has narrowed substantially and the stock is likely to give consolidation breakout in the coming days.

The medium-term trend is positive, as the stock is trading above its 50-day SMA and 100-day SMA level. The indicators and oscillators are too poor to comment on. However, the Average Directional Index (ADX) indicator on daily time frame quoted around 16.23 and it is in a rising mode, which suggests the stock is likely to give a directional movement in the near-term.

 A consolidation breakout or breakdown below some important support/resistance level with supportive volumes will lead to the major advance or decline. For the short-term, Rs. 43 level will be the crucial resistance for the stock. A follow-through move above this level would lead to an extension of the pull-back toward Rs. 50, followed by Rs. 55. While on the downside, the level Rs. 34.60 will be the immediate support, failure to hold this support would lead to further correction up to the level of Rs. 29.