GRSE - Base Formation Turning into Breakout Setup

Garden Reach Shipbuilders & Engineers Ltd – Base Formation Turning into Breakout Setup

📈Pattern & Setup:

GRSE has been quietly forming a classic rounding base pattern over the past few months, absorbing every shakeout phase (as marked on the chart). Each dip found buyers stepping in, creating a smooth U-shaped recovery — a strong sign of accumulation.

Now, the stock is attempting to break out of its neckline resistance near 2750 after multiple retests. This zone has acted as a wall for months, but the recent surge in buying volume right after the last shakeout hints that strong hands are taking control.

If price sustains above this neckline, the breakout can easily trigger a sharp rally toward 3500+ in the medium term.

📝 Trade Plan:

Entry: Above 2760–2780 for confirmation of breakout.

🚩Stop-Loss: 2600 (below trendline and last shakeout low).

🎯Targets:

Target 1 → 3100 (initial move).
Target 2 → 3520 (pattern completion, ~25% potential).

💡Pyramiding Strategy:

1. Enter first lot on breakout above 2780.
2. Add more once the stock sustains above 2850 with volume confirmation.
3. Trail stop-loss to 2670 after price crosses 2950.

🧠Logic Behind Selecting this Trade:

The combination of shakeouts, rising demand volume, and a well-rounded base indicates that the stock is in late-stage accumulation. Breakouts from such long bases tend to deliver strong, sustainable upside moves.

This is a textbook case of "volume follow-through after consolidation", which often marks the beginning of a fresh uptrend.

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🔴Disclaimer:

This analysis is for educational purposes only. Not a buy/sell recommendation. Please consult your financial advisor before taking trades.