Bollinger Bands are 51.38% wider than normal. The large width of the bands suggest high volatility as compared to Rel.capital's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 12 period(s). The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.
The recent price action around the bands compared to the action of the Relative Strength Index (RSI) suggests that a possible selling (short) opportunity may exist. Prices have recently peaked above the upper band. This action was followed by a selloff and then another peak inside the bands. The RSI has diverged from this price action with successive lower peaks, suggesting weakness ahead. A protective buy stop should be placed at or slightly above 470.7000. For confirmation of this selling opportunity, you should look at a volume based indicator such as the On Balance Volume or Money Flow Index for confirmation.
Ravi Pathak
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