Technical Analysis Cochin Shipyard Limited

The stock

is witnessed a parabolic move starting in early 2024 peaking near the 2800–2900 range. Since that peak the stock has been making Lower Highs and Lower Lows which is a classic definition of a downtrend or a deep correction. The double top there is a visible secondary peak around June/July 2024 near 2600. Since it failed to cross the previous lifetime high it signaled exhausting buying pressure. The stock is currently trading around 1490. It has lost nearly 50% of its value from the top bringing it back to a zone that acted as a launchpad during the initial rally. Immediate support the 1400 – 1450 zone is critical. You can see on the chart that price has consolidated here before. If it breaks below 1400 the next major support isn't until the 1200 mark. Recently resistance to show any signs of strength the stock needs to cross the 1650 – 1700 range. The psychological and technical barrier sits at 2000. Until the stock stays below this the trend remains Sell on Rise. For fresh buyers avoid catching a falling knife. Wait for the stock to cross and sustain above 1600 with high volume before entering. For holders keep a close eye on the 1400 support. A breakdown below this could lead to further pain. The stock has corrected significantly making its valuation more attractive than it was at 2800. However technicals suggest patience is required. Technical analysis is based on historical patterns and does not guarantee future results. Always use a Stop-Loss to manage your risk.