Bollinger Band squeeze breakout: Trident locks at upper circuit!

The stock got locked at an upper limit of Rs 17.20. So, now, the big question is as to what is causing the big move in the stock on Monday?! 

The favourite stock of traders and investors, Trident Limited is back in action on the bourses today. The stock got locked at an upper limit of Rs 17.20. So, now, the big question is as to what is causing the big move in the stock on Monday?! 

The answer to this is that the stock is coming out of a Bollinger Band squeeze. For those, who are not aware with Bollinger Band squeeze, it occurs when volatility falls to low levels and as we know that volatility is cyclical, a period of low volatility is often followed by a period of high volatility. An important point to note here is that a fresh upmove starts with a squeeze and subsequent break above the upper band.  

The stock has witnessed upsurge in volumes along with the price rise, which indicates buyers’ interest in the stock. Volume recorded in the stock is highest since mid-June 2021. The 14-period RSI has entered into the bullish zone as it crossed 60-mark.   

The stock is up by 73.74 per cent on a YTD basis while it went up by 151.09 in the last one-year period. The stock is nearly 11 per cent away from its 52-week high of Rs 19.30, which was registered on May 12, 2021.