Cochin Shipyard Ltd – Shakeout to Structure Breakout Setup

Cochin Shipyard Ltd – Shakeout to Structure Breakout Setup

COCHINSHIP

📈 Pattern & Setup:

Cochin Shipyard has just completed a **textbook liquidity sweep** and is now showing a clean structural shift. The stock first broke structure with a shakeout under the rising trendline but smartly reclaimed it while maintaining a higher low — a strong signal that sellers have been absorbed.

Price is now **tightening between two converging trendlines**, compressing volatility and energy for the next breakout. If the stock sustains above 1800, it’s poised for a sharp upside move toward 2200+.

The recent candles show controlled accumulation with volume support, suggesting quiet re-entry from institutional players.

📝 Trade Plan:

✍Entry: Above 1800 (confirmation of breakout)

🚩Stop-Loss: 1680 (below higher low)

🎯Targets:

Target 1 → 2000
Target 2 → 2250 (around 26% potential upside)

💡 Pyramiding Strategy:

1. Enter 60% position on breakout above 1800
2. Add 40% once price sustains above 1850 with volume spike
3. Trail stop-loss to 1740 once price crosses 1950

🧠 Logic Behind the Setup:

This is a **classic shakeout + higher low combination**, where weak hands are flushed out before the next impulsive rally. The trendline compression and structure recovery confirm the strength of the ongoing re-accumulation phase.

A sustained close above the breakout zone could trigger a momentum phase similar to its previous rallies.

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🔴Disclaimer:

This analysis is for educational purposes only. Not a buy/sell recommendation. Please do your own research or consult your financial advisor before trading.