SIB (W) - A Powerful Breakout After a Bullish Reversal

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.