Technical Analysis of BreakOut Stocks for Short Term Trading – April 05, 2022

Ruchit Jain Ruchit Jain

Last Updated: 7th September 2023 - 05:09 pm

Listen icon

Read here about breakout stocks, its meaning and what are the breakout stocks for today.

Breakout Stocks: What are the breakout stocks for today?

A breakout is a phase where stock price moves outside a consolidation with increased volumes. Such breakouts generally lead to good price movement in short term and this is one of the proven method for selecting buy best share to trade for short term. In this column, we inform our readers the breakout stocks today which can be considered as best short term stocks.

We cover the stocks which have given a breakout from the resistance or stocks which have broken their important support levels. Shares which given a breakout above its resistance with good volumes should be referred for bullish trades which stocks which breaks their supports should be referred for bearish trades. 
The stocks given are for reference and traders are advised to take their own decision and trade with proper money management.

Today, we have picked two stocks with a consolidation breakout set up as per technical analysis


Best Stocks to Trade for Short Term


1. Birlasoft Ltd.
 

Birla Soft Ltd

 

The stock prices have consolidated above its ‘200 DEMA’ in the recent past and have formed an ‘Inverted Head and Shoulders’ pattern above this support. The stock has given a breakout above the neckline of the pattern with higher than average volumes which is a positive sign.

The ‘RSI’ oscillator is also indicating a positive momentum and hence, traders can look to buy the stock around current market price of Rs.480 for a potential target of Rs.524. The stoploss for this trade should be placed below Rs.472.

BirlaSoft Limited Share Price Target - 

Buy Price – 490
Stop Loss – 472
Target Price – 524
Holding Period – 1 week 
 

2.  Dixon Technologies
 

Dixon Techologies

 

After a price-wise correction since mid-October, the stock has now also seen a time-wise correction in last three months as the prices have consolidated within a range. Prices gave a breakout from this consolidation with higher than average volumes which is a positive sign.

The longer term trend continues to be positive and hence, we expect the stock to resume its broader uptrend soon. Hence, traders can look to buy the stock on dips in the range of Rs.4580-4550 for a potential target of Rs.5000 in the near term. The stoploss for this trade set up can be placed below Rs.4350.

      
Dixon Technologies Share Price Target - 

Buy level – 4580 - 4550
Stop Loss – 4350
Target Price  – 5000
Holding Period – 2-3 weeks

Disclaimer: The investments discussed or recommended may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and only after consulting such independent advisors as may be necessary.

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Indian Stock Market Related Articles

Gold Price Forecast for Next Week

by Sachin Gupta 11th Oct 2024

Muhurat Trading 2024

by 5paisa Research Team 11th Oct 2024

Best Government Bank Stocks

by 5paisa Research Team 26th Sep 2024

Upcoming IPOs - LG Electronics India & HDB Financials

by 5paisa Research Team 27th Sep 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?