SRM Contractors Ltd – Shakeout-to-Breakout SetupSRM Contractors Ltd – Shakeout-to-Breakout Setup
NSE:SRM
📈 Pattern & Setup:
SRM Contractors is consolidating just below its key resistance around 570 after multiple shakeouts. Each shakeout has been followed by strong green candles and volume spikes — a clear indication of smart money quietly accumulating.
The recent green triangle right after a shakeout marks a potential entry signal, showing that buyers are absorbing every dip near support. The structure is forming a tight range between 540–570, and a breakout above 575 could trigger a new leg of rally continuation.
📝 Trade Plan:
✍Entry: Above 575 (breakout confirmation)
🚩Stop-Loss: 540 (below the latest shakeout low)
🎯Targets:
Target 1 → 610
Target 2 → 648 (13% potential move)
💡 Pyramiding Strategy:
1. Enter with 60% position above 575
2. Add 40% once the stock sustains above 590 with strong volume
3. Trail stop-loss to 555 once price crosses 600
🧠 Logic Behind Selecting this Trade:
This setup fits perfectly into the “shakeout-to-breakout” pattern — a reliable sign of institutional accumulation. Repeated rejections followed by higher lows are signs of pressure building near resistance. With volume steadily improving and market structure tightening, a clean breakout could be imminent.
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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.
