AU Small Finance Bank Poised at major Resistance—Overbought RSI Signals Imminent Pullback

AU Small Finance Bank is powering higher within a long-term rising channel (orange), having decisively cleared the ₹730.85 pivot. However, the next key hurdle lies near ₹811.4, the swing-high resistance where supply historically stepped in. Technical Highlights Rising Channel Price has bounced cleanly off the channel floor and mid-line, confirming the bullish slope. The upper trendline now converges with the horizontal ₹811.4 ceiling, making this zone a potent resistance confluence. Momentum (RSI 14) The weekly RSI sits around 75, deep into overbought territory (>70). Such extremes typically precede at least a short-term pause or pullback to digest recent gains. Volume Profile Recent breakout above ₹730 was met with above-average volume, signaling strong participation—but also suggesting that bulls may need a breather before tackling the tougher supply zone ahead. Key Levels Level Type 811.4 Major resistance (supply) 750–730 Near-term support (former R) 700–680 Rising channel mid-line 630–600 Lower channel boundary Trading Plan Partial Profit Booking: Consider booking 25–50% of long positions as price approaches ₹810–815. Watch for Pullback: Look for a retracement into ₹750–730 (former resistance turned support) as a lower-risk entry. Bullish Confirmation: A weekly close above ₹815–820 with cooling RSI would reinforce strength for a move toward the channel top near ₹840–860. Risk Management: Use a stop under ₹725 if holding through a pullback, or under ₹680 for swing re-entries. 📢 Disclaimer: This is for informational purposes only. Nothing herein constitutes a buy or sell recommendation. I may or may not be holding a position in the stock mentioned. 🧑‍💼 Rajneesh Sharma is a SEBI-registered Research Analyst (Reg. No. INH000020332). 📄 Investments are subject to market risks. Read all related documents carefully before investing.