Shipping Corporation of India Ltd – Preparing for a Breakout

Shipping Corporation of India Ltd – Preparing for a Breakout

SCI

📈 Pattern & Setup:

Shipping Corporation is displaying a clean **re-accumulation structure** after multiple shakeouts and strong absorption near 200 levels. The recent volume buildup hints that institutional players are quietly adding positions.

Price is now **hovering close to the long-term descending resistance line**, showing tight consolidation near the upper boundary — a typical pre-breakout behavior. The controlled pullbacks and low-volume retracements confirm that supply is drying up.

If the stock manages to close above 275–280 with volume, it could mark the start of a fresh uptrend phase targeting its previous highs around 380+.

📝 Trade Plan:

✍Entry: Above 280 (weekly close confirmation)

🚩Stop-Loss: 245 (below recent higher low)

🎯Targets:

Target 1 → 330
Target 2 → 381 (around 40% potential move)

💡 Pyramiding Strategy:

1. Initiate 60% position above 280 on breakout confirmation
2. Add 40% above 300 once price sustains with volume
3. Trail stop-loss to 265 once stock closes above 320

🧠 Logic Behind the Setup:

After a strong shakeout in Aug-2025, SCI entered an absorption phase with rising demand and falling supply. This type of setup often precedes large directional moves, especially when backed by visible volume contraction and re-expansion patterns.

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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.