After a brief downtrend from its January 2024 all-time high (ATH), South Indian Bank has signaled a strong bullish reversal, culminating in a decisive, high-volume breakout this past week.
The Reversal and Consolidation
The stock's downtrend was halted by the formation of a Double Bottom, a classic bullish reversal pattern, which kicked off a new uptrend in April 2025. Following this, the stock entered a consolidation phase, trading sideways as it approached a descending resistance trendline from its ATH. During this period, trading volume noticeably dried up, often a precursor to a significant move.
This Week's Decisive Breakout
The stock broke out of its consolidation this week with exceptional force:
- Massive Price & Volume Surge: The stock gained +15.04%, supported by an enormous volume of 180.45 million shares.
- Dual Resistance Breach: The breakout was technically significant as the price closed decisively above two key resistance levels: the primary descending trendline and a short-term horizontal resistance.
This powerful move is strongly supported by momentum indicators. The short-term Exponential Moving Averages (EMAs) show a positive crossover, and the Relative Strength Index (RSI) is rising on both the Monthly and Weekly charts, indicating strong underlying momentum.
Outlook and Key Levels
The breakout suggests a clear upward path, but key levels should be monitored.
- Bullish Target: If the momentum continues, the next major target is the ₹45 level. This would require the stock to break through its previous ATH, which will now act as a significant resistance zone.
- Key Support: If the breakout fails to sustain, the primary support area is likely to be around the ₹27 level.
The key now is to watch for follow-through buying in the upcoming week or a potential retest of the broken trendline as support, which would further confirm the strength of this new uptrend.
The Reversal and Consolidation
The stock's downtrend was halted by the formation of a Double Bottom, a classic bullish reversal pattern, which kicked off a new uptrend in April 2025. Following this, the stock entered a consolidation phase, trading sideways as it approached a descending resistance trendline from its ATH. During this period, trading volume noticeably dried up, often a precursor to a significant move.
This Week's Decisive Breakout
The stock broke out of its consolidation this week with exceptional force:
- Massive Price & Volume Surge: The stock gained +15.04%, supported by an enormous volume of 180.45 million shares.
- Dual Resistance Breach: The breakout was technically significant as the price closed decisively above two key resistance levels: the primary descending trendline and a short-term horizontal resistance.
This powerful move is strongly supported by momentum indicators. The short-term Exponential Moving Averages (EMAs) show a positive crossover, and the Relative Strength Index (RSI) is rising on both the Monthly and Weekly charts, indicating strong underlying momentum.
Outlook and Key Levels
The breakout suggests a clear upward path, but key levels should be monitored.
- Bullish Target: If the momentum continues, the next major target is the ₹45 level. This would require the stock to break through its previous ATH, which will now act as a significant resistance zone.
- Key Support: If the breakout fails to sustain, the primary support area is likely to be around the ₹27 level.
The key now is to watch for follow-through buying in the upcoming week or a potential retest of the broken trendline as support, which would further confirm the strength of this new uptrend.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.