State Bank of India (SBI) – Bullish Reversal Setup

3 ott

State Bank of India (SBI) – Bullish Reversal Setup with Inverse Head and Shoulders Pattern

SBI is currently forming a classic Inverse Head and Shoulders pattern on the daily chart, a strong indication of a potential bullish reversal. The neckline, located at ₹826.45, is the critical level to watch. A successful breakout above this level could trigger upward movement towards ₹880 and ₹911, with volume confirmation needed to validate the move.

Technical Highlights:

• Inverse Head and Shoulders Pattern: The formation of this pattern suggests a trend reversal from bearish to bullish. The price is consolidating just below the neckline at ₹826. A close above this could indicate further strength.
  
• Support and Resistance: Immediate resistance is at ₹826.45, followed by targets at ₹880 and ₹911. On the downside, the stock finds support at ₹790 and ₹762, which could act as stop-loss zones.
  
• Volume Profile: High activity in the ₹790 - ₹826 range signals strong buying interest. A breakout above this range could push the stock into the next major volume zone around ₹880.
  
• Moving Averages: The stock is trading above its 20-day, 50-day, and 100-day moving averages, confirming a bullish bias in the near term.
  
• RSI (Relative Strength Index): RSI is neutral around 50, signaling consolidation. A push above 60 would confirm bullish momentum in line with a potential breakout.
  

Outlook:
Bullish Scenario: A breakout above ₹826 could open the door for a move toward ₹880 and ₹911. Traders should look for volume confirmation to ensure the breakout's sustainability.
Bearish Scenario: Failure to break above ₹826 could lead to a pullback toward support at ₹790, with ₹762 being the next key level on the downside.
SBI appears poised for a breakout, making it an attractive opportunity for traders looking for a bullish reversal setup.