For investors looking to join strict technical rules with fundamental growth study, the method made famous by Mark Minervini gives a planned system. This system, often called the SEPA (Specific Entry Point Analysis) strategy, depends on finding stocks already in strong uptrends, confirmed by a particular group of moving average positions and price movement, that are also backed by quickening earnings and sales growth. The aim is to catch leaders early in their big price moves by making sure both the technical "how" and fundamental "why" agree. A stock that meets the Minervini Trend Template for technical health and also shows strong growth momentum makes a solid case for more study.
Independent Bank Corp/MA (NASDAQ:INDB) appears as a candidate worth examining through this two-part view. As a bank holding company serving Eastern Massachusetts and Southern New Hampshire, its business is based in regional commercial and consumer banking. The newer technical and fundamental information indicates it may be changing from a steady performer to one showing the traits Minervini links with possible market leadership.
Looking at the Technical Base: The Trend Template
The main part of the Minervini strategy is the Trend Template, a list made to sort for stocks in a confirmed Stage 2 uptrend. This removes uncertainty and aims money at issues where the direction of least pressure is clearly higher. Let's see how INDB measures against these important technical points:
- Price vs. Key Moving Averages: The stock's present price sits well above its rising 50-day ($72.57), 150-day ($69.05), and 200-day ($66.85) simple moving averages. This position is a main need, showing continued buying across short, medium, and long-term periods.
- Moving Average Position: The order of averages is right for a positive trend: the shorter 50-day SMA is above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This "stacked" order confirms the uptrend's soundness and force.
- Nearness to Highs: A main idea of the strategy is to focus on strength, not low price. INDB's price is within 4% of its 52-week high of $78.17, meeting the "within 25% of the high" point and indicating it is acting as a market leader, not a follower.
- Space from Lows: The stock is trading about 45% above its 52-week low, well past the 30% mark. This shows a major recovery trend is already in place.
- Relative Strength: With a ChartMill Relative Strength (CRS) score of 79.09, INDB is doing better than nearly 80% of the wider market. Minervini notes that real leaders usually have RS ratings above 70, and best in the 80s or 90s, which INDB is nearing.
This technical view shows a stock in a sound, set uptrend, meeting each point of the Trend Template. It confirms the stock is in the wanted Stage 2 rise, giving the technical "approval" for the next part of study.
Studying the Growth Driver: High Growth Momentum
While a good chart is needed, Minervini states that the largest winners are almost always driven by fundamental speed. The "High Growth Momentum" part of the search aims to find these fundamental causes. For a regional bank like INDB, newer measures show clear positive change points:
- Earnings Speed: The newest quarter shows a strong year-over-year EPS growth of 53.47%. This is a major speed increase from the last quarter's growth of 3.31% and quarters before that were negative or flat. This jump is exactly the kind of positive earnings surprise and speed that draws institutional notice.
- Sales Growth Speed Increase: Revenue growth has also moved to a faster speed. The latest quarter had a 39.08% year-over-year increase in sales, a clear speed increase from the low single-digit or negative growth seen in the three quarters before.
- Analyst Positive View: The forward view supports the momentum. Analyst guesses for EPS next quarter predict 39.43% growth, and guesses for both next quarter's sales and next year's EPS have been moved up over the past three months. This growing analyst feeling often comes before continued institutional buying.
- Profit Margin Improvement: After a time of shrinking, the profit margin in the last reported quarter showed a step-by-step gain, a good sign of operational efficiency or pricing power coming back.
These parts lead to a High Growth Momentum score that fits it for the search. For a bank, such sharp speeds in profit and revenue often point to good joining of purchases, better net interest margins, or unusual credit quality, all fundamental causes that can support a technical breakout.
Technical Report Summary and Pattern
Bringing the technical view together, ChartMill's own report gives INDB a solid Technical Rating of 8 out of 10, confirming the stock's overall technical condition is good. The report notes both long and short-term trends are positive and that the stock is doing better than most of its banking industry group.
The Setup Rating is a 6, showing a good but not ideal consolidation shape. The study notes that prices have been trading in a band between about $72 and $78 over the past month and are now consolidating near the middle of this band. A main resistance area is found between $77.40 and $77.58. The report indicates a possible trading pattern would include an entry on a breakout above this resistance (for example, at $77.59) with a stop-loss set below the close support around $74.39. A newer "Pocket Pivot" signal, a volume-based sign of accumulation, adds another positive note to the pattern.
For a full list of the support/resistance levels and the complete technical study, you can see the full ChartMill Technical Report for INDB.
Locating Like Chances
INDB acts as a real example of how the Minervini system, joining exact trend-following rules with a hunt for fundamental speed, can find possible candidates in all sectors. For investors wanting to search for other stocks that meet this mix of technical strength and high growth momentum, the ready-made search is there for use.
You can use this "High Growth Momentum + Trend Template" search yourself to find more possible candidates by clicking here.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The study is based on given information and shows a particular methodical system. Always do your own complete research, think about your personal risk comfort, and talk with a qualified financial advisor before making any investment choices. Past results do not show future results.
