After a post-IPO sideways trend, SBFC has been consolidating within a Triangle Pattern since April 2025. The stock is currently in a state of building tension, with bullish underlying indicators running into a strong, proven resistance.
The Bullish Undertone
The technical indicators on higher timeframes are showing constructive strength, suggesting a bullish bias:
- Strong Momentum: The short-term Exponential Moving Averages (EMAs) are in a bullish Positive Crossover (PCO) state on both the Monthly and Weekly charts.
- Rising Strength: The Relative Strength Index (RSI) is also rising on both the Monthly and Weekly timeframes.
- Volume: Trading volume has remained at an average level, indicating an absence of significant selling pressure during this consolidation.
The Key Resistance
Despite these bullish indicators, the stock remains trapped below the upper resistance trendline of the triangle. The strength of this resistance was confirmed last week, when the stock attempted to break out but failed to close above the trendline, resulting in a "fakeout."
This week's action, a modest surge of +2.35% on 16.77 million in volume, is another attempt to push against this same barrier, but it has not yet succeeded.
Outlook and Key Levels
The stock is at a clear inflection point. A decisive move is required, as the price is being squeezed between rising momentum and a hard ceiling.
- Bullish Scenario:A breakout will only be confirmed with a decisive close above the upper resistance trendline on high volume. If the stock can achieve this and sustain the momentum, the next potential target is the ₹115 level.
- Bearish Scenario: If the stock is rejected from this resistance again and fails to sustain its upward momentum, it will likely fall back with a potential downside to the ₹110 level.
The price action in the coming trading sessions is critical. All eyes should be on the upper trendline of the triangle for either a confirmed breakout or another rejection.
The Bullish Undertone
The technical indicators on higher timeframes are showing constructive strength, suggesting a bullish bias:
- Strong Momentum: The short-term Exponential Moving Averages (EMAs) are in a bullish Positive Crossover (PCO) state on both the Monthly and Weekly charts.
- Rising Strength: The Relative Strength Index (RSI) is also rising on both the Monthly and Weekly timeframes.
- Volume: Trading volume has remained at an average level, indicating an absence of significant selling pressure during this consolidation.
The Key Resistance
Despite these bullish indicators, the stock remains trapped below the upper resistance trendline of the triangle. The strength of this resistance was confirmed last week, when the stock attempted to break out but failed to close above the trendline, resulting in a "fakeout."
This week's action, a modest surge of +2.35% on 16.77 million in volume, is another attempt to push against this same barrier, but it has not yet succeeded.
Outlook and Key Levels
The stock is at a clear inflection point. A decisive move is required, as the price is being squeezed between rising momentum and a hard ceiling.
- Bullish Scenario:A breakout will only be confirmed with a decisive close above the upper resistance trendline on high volume. If the stock can achieve this and sustain the momentum, the next potential target is the ₹115 level.
- Bearish Scenario: If the stock is rejected from this resistance again and fails to sustain its upward momentum, it will likely fall back with a potential downside to the ₹110 level.
The price action in the coming trading sessions is critical. All eyes should be on the upper trendline of the triangle for either a confirmed breakout or another rejection.
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.
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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.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.