Bollinger Band Squeeze on EEI

EEI is showing a Bollinger Band Squeeze as it try to make a comeback above 76.4% Fibonacci Retracement level.

The Bollinger Band Squeeze occurs when volatility falls to low levels and the Bollinger Bands narrow. According to John Bollinger, periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signal sthe start of a new move. A new advance starts with a squeeze and subsequent break above the upper band. A new decline starts with a squeeze and subsequent break below the lower band. -http://stockcharts.com

Caveat!

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