IOB - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 19 Sept 25, 2:16 pm

Technical Rating: 4.0

Here’s a detailed technical analysis of Indian Overseas Bank (IOB)

📊 Trend Overview

Phase: Reversing with bullish momentum

Price Action: Trading above the 50-DMA (₹38.7) but still below the 200-DMA (₹42.4), suggesting a short-term recovery within a broader downtrend.

Volume: Slightly below average (99.2L vs 106.7L), indicating moderate interest but not breakout-level enthusiasm.

📈 Momentum Indicators

RSI (62.1): Bullish zone — signals improving momentum, approaching overbought territory.

MACD (0.61): Positive and diverging — confirms bullish momentum and potential continuation.

Bollinger Bands: Price likely near the upper band, suggesting strength but also potential for short-term resistance or pause.

🧭 Chart Patterns

Rounded Base Formation: Price recovery from ₹33 indicates a potential reversal setup.

Trendline Support: Rising trendline from recent lows supports the bullish structure.

🔍 Support & Resistance Levels

Level Price (₹) Commentary

Support 1 38.7 50-DMA, short-term base

Support 2 36.0 Previous swing low

Support 3 33.0 52-week low

Resistance 1 42.4 200-DMA, trend reversal trigger

Resistance 2 46.0 Minor resistance zone

Major Resistance 52.0 Breakdown zone from prior support

🎯 Entry & Exit Zones

Optimal Entry: ₹38.0–₹40.2 (on dips with volume confirmation)

Short-Term Target: ₹42.4–₹46.0

Exit Zone / Stop-Loss: ₹36.0 (below swing support)

🔄 Short-Term Outlook

Momentum: Positive and building

Bias: Bullish above ₹38.7; cautious below ₹36.0

Phase: Reversing — early signs of trend recovery

🧠 Key Takeaways

IOB is showing signs of technical recovery after a prolonged decline, supported by bullish indicators and moving average crossover.

RSI and MACD confirm momentum, while price action near support zones hints at potential breakout.

A close above ₹42.4 with volume could confirm trend reversal and open upside toward ₹46–₹52.

Let me know if you’d like a chart visualization or screener of similar reversal setups in the banking sector.

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