Technical Analysis of BreakOut Stocks for Short Term Trading – February 08, 2022

BreakOut Stocks

Stock Recommendations
by Ruchit Jain Last Updated: 2022-02-08T19:01:44+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. Reliance Industries
 

reliance

 

Post an impulsive up move, the stock entered a corrective phase in mid-October 2021 and has seen a price-wise as well as a time-wise correction. The stock has been hovering around its ‘200-day EMA’ which has acted as a support in this uptrend in the recent past. On the short term charts, prices have also formed a ‘Double Bottom’ pattern around this support. The RSI oscillator is indicating a probable change in momentum which is a positive sign.

Hence, traders can look to trade with a positive bias and buy in the range of Rs.2356-2350 for potential targets of Rs.2405 and Rs.2445 in next 1-2 weeks. One can place a stop loss below Rs.2305 on long positions. 
 

Reliance Industries Share Price Target - 

Buy Range –  Rs.2356 - Rs.2350
Stop Loss – Rs.2305
Target Price 1 – Rs.2405
Target Price 2 - Rs.2445
Holding Period – 1-2 weeks


2. BPCL
 

BPCL

 

The stock has seen decent volatility in the recent past given the uncertainty over its disinvestment. However, the prices are currently trading around its support zone and the downside seems to be very limited from current levels. The stock is trading around its ‘Channel’ support and the ‘RSI’ oscillator is forming higher bottoms.

Hence, we expect the stock to pullback higher from the current support zone in the short term. 
Thus, traders can look to trade with a positive bias and buy in the range of Rs.377-372 for potential target 400 in next 1-2 weeks. One can place a stop loss below Rs.364 on long positions.          


BPCL Share Price Target

Buy Range – Rs.377 - Rs.372
Stop Loss – Rs.364
Target Price – Rs.400
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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