Strong Breakout on Explosive Volume!📈 COCHIN SHIPYARD LTD – TECHNICAL ANALYSIS
📆 Date: June 5, 2025
🔍 Timeframe: Daily
Price Action:
Cochin Shipyard spiked over 12.6% today with a powerful breakout candle, closing at ₹2350.80 — well above recent swing highs. The move came after a short consolidation, and today's session ended near the day’s high, confirming bullish momentum and aggressive buying.
Chart Pattern / Candlestick Pattern:
Breakout Candle – strong body, minimal wicks
Bullish Continuation Structure – breakout from a flag/box base
10-Day Volume Breakout – indicates conviction
Momentum Ignition Bar – potential start of a new leg up
Technical Indicators: (Yellow Dashboard Highlights)
✅ Bullish Momentum Bar – confirms strength
✅ Short Term Breakout + Positional Breakout – ideal for both swing and short-term traders
✅ Buy Today, Sell Tomorrow – good for BTST-style trades
✅ RSI Breakout + Bollinger Band Breakout – entering momentum zone
✅ Bullish VWAP Alignment – price > average traded price
✅ BB Squeeze-Off – Breakout Confirmed – indicates explosive move post low volatility
Support & Resistance Levels:
Immediate Resistance: 2473.43
Next Resistance: 2596.07
Major Resistance: 2812.13
Immediate Support: 2134.73
Secondary Support: 1918.67
Major Support: 1796.03
Possible Demand Zone: 2175 – 2052.20 (SL below: 2042)
Chart Overview:
This breakout chart highlights:
🔸 Strong bullish candle with volume surge
🔸 A defined breakout zone and volume-led confirmation
🔸 Fresh demand zone marked for potential pullback entries
🔸 Multiple indicator alignments pointing toward momentum continuation
Educational Breakdown:
This is a textbook high-conviction breakout setup backed by:
Price Action: Clean breakout bar with momentum
Volume Spike: 2.3x average volume (23.86M vs avg 10.5M)
Multi-Indicator Confluence: RSI, VWAP, BB, Momentum Bar
Demand Zone Mapping: A pre-breakout accumulation base
Such setups are often part of the markup phase following accumulation. They signal strong interest from large players, often resulting in swift follow-through in the days ahead.
How to Trade COCHIN SHIPYARD LTD (for learning purpose):
Entry Example: 2380 (Triggered)
Stop Loss: 2035.45
Target 1: 2724.55
Target 2: 3069.15
Target 3: 3413.70
Sample Quantity: 50 shares
Risk per Share: 344.55
Reward Potential: up to 1033.70
RR Ratio: 1:1 to 1:3+
🔁 Aggressive Traders: Can ride the trend with a trailing stop
🛑 Conservative Traders: May wait for pullback into 2175–2052 zone for fresh entry
⚠️ Risk Management Tip:
Never chase a breakout blindly. Always have a defined entry, stop loss, and target. As price enters overbought zones, risk control becomes even more important. Focus on capital protection, especially when trading momentum setups.
📢 Disclaimer
This content is for educational and informational purposes only. It is not investment advice, stock tips, or a recommendation to buy/sell. Stock market trading involves risks. Always consult a SEBI-registered advisor before taking any trades. The author is not SEBI-registered and cannot be held responsible for any losses. Practice sound risk management and do your own research.
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