Venky’s India – Downtrend Break With Strong Volume & RSI Bullish Divergence

1. Breakout Above 30-Week SMA With Volume Price has finally broken above the 30-week SMA after months of trading below it. A strong volume expansion accompanies this move, adding conviction to the breakout. This is the first meaningful bullish shift in the medium-term trend. 2. Falling Channel Breakout The stock has been moving inside a well-defined falling channel for months. This week, price has: Broken above the upper boundary of the channel Closed strongly above it Confirmed a structural trend reversal setup This marks the end of persistent lower highs and lower lows. 3. RSI Bullish Divergence While price made lower lows recently, RSI formed higher lows — a classic bullish divergence. This is often an early signal of trend reversal. Additionally, RSI has crossed above the 50 zone, indicating improving internal strength. 4. RSI Breakout RSI has also broken above its own multi-month downtrend line. Momentum is no longer bearish and is shifting from neutral → positive. This aligns well with the price breakout. 5. Volume Confirmation OBV has turned upward and volume spikes confirm accumulation at lower levels. Higher participation strengthens the breakout reliability. 6. Structural Improvement The chart now shows: Trendline and channel breakout Break above 30-week SMA Bullish RSI signals Rising volume participation Strong bullish candle at support All these elements indicate a potential beginning of a medium-term trend reversal. 📢 Disclaimer: This analysis is for educational and technical study purposes only. Not investment advice. 👤 Rajneesh Sharma – SEBI Registered Research Analyst (INH000020332)