Technical Analysis of BreakOut Stocks for Short Term Trading – February 04, 2022

BreakOut Stocks

Stock Recommendations
by Ruchit Jain Last Updated: 2022-02-09T18:51:36+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 from a consolidation phase as per technical analysis

Best Stocks to Trade for Short Term


1. Hind Copper Limited (HINDCOPPER)
 

hind copper

 

The Dollar Index (DXY) has seen a sharp reversal in this week and is implying a short term bearish trend. Metals space has a negative correction with the Dollar index and a negative trend in the DXY should support the metal stocks. Hind Copper has recently seen a long consolidation around its ‘ 200-day EMA’ and now the stock has witnessed a buying interest.

This can be seen by the rising volumes in the counter along with the rising stock prices and the prices have even given a breakout from its consolidation phase. The RSI oscillator is indicating a a positive momentum and hence, we expect the stock prices to continue its up move in the short term.

Traders can look to trade with a positive bias and buy in the range of Rs.137-134 for potential targets of Rs.146 and Rs.152 in next 2-3 weeks. One can place a stop loss below Rs.129.50 on long positions. 


Hind Copper Share Price Target -

Buy Range – Rs.137 - Rs.134
Stop Loss – Rs.129.50
Target Price 1 – Rs.146
Target Price 2 - Rs.152
Holding Period – 2-3 weeks


2. VRL LOGISTICS
 

VRL

 

The stock has been forming a ‘Higher Top Higher Bottom’ structure on the weekly charts and is thus in an uptrend. In last couple of months, the stock went through a time-wise correction and prices have given a breakout from this consolidation during this week.

In last three sessions, the stock price up move on was supported by good volumes which indicate that the stock has resumed its broader uptrend. The breakout zone of 510-505 should now become a support on any declines and hence, short term traders can adopt a buy-on-dip strategy in the stock. 

Thus, traders can look to trade with a positive bias and buy in the range of Rs.520-515 for potential targets of Rs.550 and Rs.572 in next 3-4 weeks. One can place a stop loss below Rs.490 on long positions.          


VRL Logistics Share Price Target -

Buy Range – Rs.520 - Rs.515
Stop Loss – Rs.490
Target Price 1 – Rs.550
Target Price 2 - Rs.572
Holding Period – 3 -4 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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