Over the past couple of months, the Media stocks are showing some improvement in their relative performance against the broader markets. They had grossly underperformed in the past the most recent weeks have shown them trying to make a comeback. The Media stocks might not have been leading the market performance as of now but they are slowly inching towards their beginning of relative outperformance against the markets in general. Out of NIFTY Media  Index, Zee Entertainment Enterprises Ltd. (ZEEL) is one such stock that might see some upward revision in its price over the immediate short term.

Following the most recent high marked near 378 levels, ZEEH has shown corrective retracements; it has bounced on a couple of occasions but has resisted the two falling trend lines as evident from the chart. The most recent price action has seen the stock developing a bullish Ascending Triangle Pattern on the chart. 

The placement of the Relative Rotation Graph shows the stock about to roll over in the improving quadrant. The OBV is seen inching sharply higher; this shows that the most recent up move that the stock saw was backed by volume participation. The RS line against NIFTY500 has also crossed above the 50-period moving average.

The RSI is seen trying to break above the falling trend line pattern resistance. The daily MACD has shown a positive crossover; it is now bullish and trades above the signal line.

Any price move above 258-260 levels will lead to a breakout from this bullish Ascending Triangle; the most immediate resistance the stock may face is the 200-DMA which is presently at 272. If this is taken out, levels of 290-292 cannot be ruled out.

Any close below 240 should be used as a protective stop for this expected move in the price.

Foram Chheda, CMT