PVR features as Bollinger Band Squeeze pick

Our Bollinger Band Squeeze scanner picked PVR limited, which indicates 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.

The stock had formed a bullish opening Marubozu candle as on the weekend of August 23, 2019 and, thereafter, bounced sharply to its all time high level. Considering the daily time frame, the stock is trading in a symmetrical triangle pattern for the last five weeks. 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.

Majorly, the stock is displaying a bullish trend as it is trading above its medium-long term moving averages, that is, 50-day EMA, 100-day EMA, and 200-day EMA. Six trading sessions ago, the 50-DMA crossed over the 200-DMA and was termed as the 'golden crossover', which is a long term bullish signal. The daily strength indicator, RSI, is oscillating in the range of 56-50, pointing at an absence of strength.  However, the momentum oscillator stochastic is scaling up, indicating an upside momentum.

Talking purely about the trading levels, the zone of Rs. 1,750-1,740 level is a crucial support area and the level of Rs. 1,840-1,850 is a resistance zone. A sustainable move on either side would lead to a trending move.