Apollo Tyres Ltd features as Bollinger Band Squeeze pick

Apollo Tyres Ltd features as Bollinger Band Squeeze pick

Vinayak Gangule
/ Categories: Trending

The stock of Apollo Tyres Limited was picked by our Bollinger Band squeeze scanner, which suggests that the stock is near a consolidation breakout. Bollinger Band squeeze occurs when volatility falls to low levels and the bands narrow. A volatility contraction or narrowing of the bands can foreshadow a significant advance or decline.

After registering the high of Rs 182.35 on January 27, 2020, the stock has witnessed a correction. The correction is halted at Rs 73.40 level and thereafter, it has witnessed a gradual pullback rally. In this pullback rally, the stock has made two attempts to close above 23.6 per cent retracement level of its recent downward rally (Rs 182.35-Rs 73.40) but failed and witness a correction. Considering the weekly timeframe, the stock is trading in a consolidation since the last three 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.

Currently, the stock is trading below its short and long-term moving averages, i.e. 50-day EMA, 100-day EMA and 200-day EMA. The leading indicator, 14-period daily RSI hovers in a neutral region without any bias since the last 28 trading sessions. The daily ADX is below the level of 5. This clearly indicates that the stock lacks a clear trend. Other indicators are also mirroring the same image.

Going ahead, on the higher side, the level of Rs 103.30 is acting as a stiff resistance and on the downside, Rs 81 is acting as a support level. Only a breakout on either side could lead to a directional move.

Previous Article Bata profit falls by 56.68 per cent
Next Article Sensex erases morning gains; Airtel falls by nearly 6 per cent
Rate this article:
3.6

DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR