Escorts features as Bollinger Band squeeze pick

Our Bollinger Band Squeeze scanner has picked up Escorts Limited, suggesting that the stock is near a consolidation breakout. The Bollinger Band Squeeze occurs when volatility falls to low levels and Bollinger Bands narrow down. A volatility contraction or narrowing of the bands can foreshadow a significant advancement or decline.
 
The stock had formed a reversal Bullish Engulfing candle on August 23, 2019, and thereafter, it marked a sequence of higher tops and higher bottoms. Considering the daily timeframe, the stock is trading in a symmetrical triangle-like pattern for the last 18 trading sessions. However, as of now, price action has narrowed substantially and the price has reached near the apex point of the triangle, which indicates that the stock is likely to give a breakout in the coming days.
 
Currently, the stock is trading above its 20-day EMA (646.70), 50-day EMA (610.60), 100-day EMA (593.65), and 200-day EMA (615), indicating a medium-long term uptrend. The leading indicator, 14-period daily RSI, is currently quoting at 60.80 and is in the bullish zone.
 
Talking purely about the trading levels, the zone of Rs. 642-Rs. 631 level is a crucial support area and the level of Rs. 675-Rs. 681 is the resistance zone. A sustainable move on either side would lead to a trending move.