Technical Analysis of BreakOut Stocks for Short Term Trading – December 17, 2021 - Havells, Dabur India

Breakout Stocks today - December 17

by Ruchit Jain Last Updated: Sep 07, 2023 - 05:09 pm 43.2k Views
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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 which have given a breakout (or breakdown) from a consolidation phase as per technical analysis.

 

Best Stocks to Trade for Short Term

1. Havells (HAVELLS):


havells share price chart

Image Source: Falcon

 

The ‘Higher Top Higher Bottom’ structure on the daily chart of Havells ended during mid-October when the stock corrected and broke its swing low. Prices had seen a pullback from the low of Rs. 1210 but they had formed a ‘Lower High’. If we draw a trendline joining the swing highs and the swing lows, it seen that the stock has consolidated into a ‘Symmetrical Triangle’ pattern. The prices have broken the lower trendline which indicates a bearish structure for the short term. Hence, we expect the prices to correct in the near term. Traders can look to trade with a negative bias and sell in the range of 1320-1330 for a potential targets around Rs. 1290 followed by Rs. 1245. The pattern gets negated if the prices break above Rs. 1360.

Havells Share Price Target -

Sell Price – Rs.1,320 - Rs.1,330

Stop Loss – Rs.1,360

Target Price 1 – Rs.1,290

Target Price 2 - Rs.1,245

Holding Period – 1 - 2 weeks

(Cash levels given for reference)

 

2. Dabur India (DABUR):

 

Dabur India Price Chart

 

The FMCG space has recently underperformed and had witnessed selling pressure in last couple of months. If we see the positional charts of Dabur, it is seen that the stock has given formed a ‘Head and Shoulders’ pattern on the daily chart and prices have broken the neckline support of the pattern. In technical analysis, this pattern when formed after an uptrend signals a trend reversal and hence is seen as a bearish sign. The recent pullback witnessed selling pressure and hence, the technical set up is bearish for the short term. 

Hence, we expect the prices to correct in the near term. Traders can look to trade with a negative bias and sell in the range of 565-570 for a potential targets around Rs. 545 followed by Rs. 532. The pattern gets negated if the prices break above Rs. 584. 

Dabur India Share Price Target -

Sell Price – Rs.560 - Rs.570

Stop Loss – Rs.584

Target Price 1 – Rs.545

Target Price 2 - Rs.532

Holding Period – 1 - 2 weeks

(Cash levels given for reference)

 

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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