Time Technoplast features as Bollinger band squeeze pick

Time Technoplast Ltd 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 hitting a 52-week low at Rs. 73.75 per share, the stock had marked the sequence of higher tops and higher bottoms and made highs around 103 levels. Currently, the stock is hovering around downward sloping trendline resistance since the last five weeks. However, as of now, the price action has narrowed substantially and the stock is likely to give a breakout in the coming days.

Daily strength indicator RSI continues to remain flat below its 9-day average line, indicating absence of strength. But momentum oscillator daily stochastic has given positive crossover, indicating upside momentum. Moreover, the daily MACD line has crossed above the signal line, which resulted in the histogram turning positive. 

Going ahead, it’s important for the stock to sustain and close above the zone of Rs. 96 - 99 level as it is the confluence of downward sloping trendline resistance and 100-day exponential moving average. Any sustainable move above the level of Rs. 99 is likely to open up gates for further rally towards levels of Rs. 108, followed by Rs. 115. While on the downside, the stock has crucial support in the zone of Rs. 91 - 90 level.