Last Monday’s New America article profiled Indian Bank HDB, which I thought was interesting because I had just discussed the bank in Sunday’s IBD 50 Analysis. The article told the story of the bank’s incredible growth in recent years and how it projects to continue that growth rate in the future. Since we all know that earnings and sales growth is what drives stock price, this is the type of stock we look for. The article goes on to discuss how HDB is a leading bank in terms of profitability, growth and balance sheet.

HDB broke out of its Flat Base on slightly below average volume this week. We could make the case that volume was only light because of the holiday, especially since the daily volume was61% above average when it broke out on Wednesday. This puts the stock in buy range after a strong breakout from a first stage base in a market that just delivered a Follow-Through Day. This could be a good stock to test the waters with in the new uptrend. It is also worth noting that the stock’s RS Line is at a new high.