GSPL features as Bollinger Band Squeeze pick

Gujarat State Petronet Limited (GSPL) has been picked up by our Bollinger Band Squeeze scanner, which suggests that the stock is near a consolidation breakout. The Bollinger Band Squeeze occurs when the volatility falls to low levels and Bollinger Bands narrow. A volatility contraction or narrowing of the bands can foreshadow a significant advance or decline.
 
The stock had formed a reversal Hammer candlestick pattern as on the weekend of February 22, 2019, and thereafter marked the sequence of higher tops and higher bottoms. Considering the weekly timeframe, the stock is trading in a contracting consolidation for the last five weeks. However,  as of now, the price action has narrowed substantially and the stock is likely to give a consolidation breakout in the coming days.
 
The major trend of the stock is bullish as it is trading above its weekly pivot and over its long-short term moving averages, that is, 20-day, 50-day, 100-day, and 200-day EMAs and these moving averages are in an ascending order, which suggests that the trend is strong. The leading indicator, RSI, hovers in the neutral region on both, weekly and daily timeframes, without any bias. The daily Stochastic is also oscillating in the range of 55-40 for the last 9 trading sessions. This clearly indicates that there is an absence of strength in the stock. Other indicators are also mirroring the same image.
 
Going ahead, it is important for the stock to sustain and close above the resistance zone of Rs. 220-222 level. A sustainable move above the level of Rs. 222 is likely to open up gates for further rally towards the levels of Rs. 230, followed by Rs.235. While on the downside, the stock has strong support in the zone of Rs. 210-208 level, as it is the confluence of upward sloping trendline support and 100-day EMA level.