Route Mobile is showing bullish reversal signals after undergoing a prolonged period of correction.
The stock has fallen by over 60% from its 2021 all-time high of nearly ₹2,300, but recent price action suggests that exhaustion may be setting in, according to SEBI-registered analyst Rajneesh Sharma.
Route Mobile stock has found repeated support in the ₹850 - ₹900 range, forming a strong long-term base, and the price is now inching closer to a key multi-year downtrend resistance zone.
Technically, several bullish reversal signals have emerged, Sharma noted. A clear OBV (On-Balance Volume) bullish divergence is visible, with prices making lower lows and OBV making higher lows, indicating quiet accumulation.
The relative strength index (RSI) also shows a bullish divergence, with the indicator rising toward 50 on the weekly chart despite falling prices, often a sign of shift in momentum, the analyst said. An increase in volumes further supported the bullish case.
Sharma said that the ₹1,150 - ₹1,200 area now serves as a critical resistance zone. This range aligns with long-term trendline resistance, and a weekly close above ₹1,200 would confirm a breakout.
At the time of writing, Route Mobiles shares were trading at ₹1,012.90.
Fundamentally, Route Mobile remains strong. The company maintains a net cash position of ₹8,918 crore and zero long-term debt. It has over 3,200 clients across more than 20 countries and has recently launched an AI-powered SMS protection system and a conversational commerce platform.
Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day ago.
The stock has shed over 27% of its value year-to-date (YTD).
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