Technical Analysis of BreakOut Stocks for Short Term Trading – December 16, 2021

Breakout Stocks for Short Term

Stock Recommendations
by Ruchit Jain Last Updated: 2021-12-17T12:06:42+05:30

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 which have given a breakout (or breakdown) from a consolidation phase as per technical analysis.

 

Best Stocks to Trade for Short Term

 

1. Amber Enterprises:

 

Amber Enterprises Price Chart

In last couple of months, the prices have seen a corrective phase wherein they have corrected from the high of Rs.3788. However, the longer trend continues to be positive and hence, this correction just seem to be a correction within an uptrend. Prices have taken support near their 200 day moving average on the daily chart and have given a breakout today from its falling trendline resistance. In last couple of sessions, the volumes are relatively high and the RSI oscillator is also indicating a positive momentum. Hence, it seems that the stocks has resumed its higher degree uptrend and thus could give good returns in the short term. The immediate support for the stocks is placed around Rs. 3300 while on the higher side, stock could rally upto Rs. 3600 followed by Rs. 3680.

AMBER Share Price Target -

Buy Price – Rs.3,450 - Rs.3,430

Stop Loss – Rs.3,300

Target Price 1 – Rs.3,600

Target Price 2 - Rs.3,680

Holding Period – 2 -3 weeks

 

2. LG BALAKRISHAN & BROS LTD. (LGBBROSLTD):

 

LGBROSLTD share price

 

The stock has been forming a ‘Higher Top Higher Bottom’ structure and is thus in an uptrend. Recently, the price up move has also been supported by higher volumes which is a positive sign.The stock prices have given a breakout above the recent swing high and the RSI oscillator has resumed the positive momentum on the weekly charts. The price volume action indicates that the uptrend is likely to continue in the near term and hence, short term traders should follow a buy-on-dip approach and look to accumulate the stock on any corrections. The breakout level of Rs. 590 is now expected to act as a support and hence, short term traders can look to buy this stock in the range of Rs.600-590. The stop loss can be placed below Rs. 560 for a potential target of Rs. 670-680.

LGBBROSLTD Share Price Target -

Buy Price – Rs.600 - Rs.590

Stop Loss – Rs.560

Target Price 1 – Rs.670

Target Price 2 - Rs.680

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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