Technical Analysis of BreakOut Stocks for Short Term Trading – December 27, 2021 - CCL Products, Bombay Dyeing

Stocks to Buy for Short Term

Stock Recommendations
by Ruchit Jain Last Updated: 2021-12-28T10:07:23+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 which have given a breakout (or breakdown) from a consolidation phase as per technical analysis.

 

Best Stocks to Trade for Short Term

1. CCL Products (CCL):


CCL Products Price Chart

Image Source: Falcon

 

Post an impulsive up move, CCL Products stock entered a corrective phase during the end of July 2021 and since then; prices have been consolidating within a range. The volumes during the corrective phase were lower as compared to those seen during the uptrend. Post some time-wise correction around its support on the daily chart, the stock prices have given a breakout today from the resistance with good volumes. Thus, these are early signs of a resumption of the broader uptrend in the stock and hence, one should consider this as a good buying opportunity for the short term.

Traders can look to trade with a positive bias and buy CCL Products share in the range of Rs.425-420 for a potential target around Rs.470. One can place a stop loss below Rs. 398 on long positions. 
 

CCL Products Share Price Target -

Buy Range – Rs.425 - Rs.420

Stop Loss – Rs.398

Target Price 1 – Rs.470

Holding Period – 1 - 2 weeks

 

2. Bombay Dyeing (BOMDYEING):

 

Bombay Dyeing Price Chart

 

The stock price of Bombay Dyeing which is engaged in the business of Real Estate Development, Polyester Staple Fibre and Textiles has underperformed the midcap space in last few months. This midcap stock is usually known for large moves being a high beta stock, but it has consolidated within a broad range since last few months. However, finally some buying interest has been witnessed off-late and prices have given a breakout from the recent consolidation phase with good volumes. The RSI oscillator on the daily as well as the weekly chart is indicating a positive momentum and hence, we could see a trended upmove in the counter in the short term.

Hence, traders can look to trade with a positive bias and buy Bombay Dyeing Share in the range of Rs.113-110 for potential targets of Rs. 127 -130. One can place a stop loss below Rs. 103.50 on long positions.

Bombay Dyeing Share Price Target -

Buy Range – Rs.113 - Rs.110

Stop Loss – Rs.103.50

Target Price 1 – Rs.127

Target Price 2 - Rs.130

Holding Period – 1 - 2 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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