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

Breakout Stocks for Short Term Trading

Stock Recommendations
by Ruchit Jain Last Updated: 2022-04-05T19:04:09+05:30

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.

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About the Author

Ruchit Jain is Lead Research Analyst at 5paisa. He has a vast experience of 14 years in this field and is proficient in Technical and Derivatives Research. He has completed his CMT (U.S.A.) and has done Masters in the field of Finance at Mumbai University.

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