Garuda Construction – Shakeout to Breakout Setup

Garuda Construction & Engineering Ltd – Shakeout to Breakout Setup

#GARUDA

📈 Pattern & Setup:

Garuda Construction is showing a **clean shakeout and absorption sequence** on the daily chart. After weeks of tight consolidation, the stock broke below its short-term base near 200, triggering a shakeout phase that absorbed weak hands.

What followed is classic — **swift recovery on expanding volume**, confirming smart money absorption. The stock has now reclaimed its key zone around 230 and is building momentum for a breakout above 235–240.

The structure looks like a **mini re-accumulation base**, where volatility first expands (shakeout) and then contracts sharply (absorption), setting the stage for the next move.

📝 Trade Plan:

✍Entry: Above 238 (decisive breakout confirmation)

🚩Stop-Loss: 215 (below absorption zone)

🎯Targets:

Target 1 → 255
Target 2 → 280 (around 21% potential move)

💡 Pyramiding Strategy:

1. Enter 60% position above 238 on breakout candle
2. Add remaining 40% above 245 once volume sustains
3. Trail stop-loss to 225 after price sustains above 250

🧠 Logic Behind the Setup:

The shakeout–absorption combo is a powerful Wyckoff-style signal showing that sellers are nearly exhausted while buyers are quietly taking control.

Volume is rising with price, and the price action has started to tighten near the upper band — a sign of energy compression before a potential breakout.

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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.