Technical Analysis of BreakOut Stocks for Short Term Trading – February 09, 2022

BreakOut Stocks for Short Term Trading

Stock Recommendations
by Ruchit Jain Last Updated: 2022-02-09T18:51:25+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. Eicher Motors 
 

Eicher Motors

 

The Auto space has witnessed a decent buying interest in the recent past and stocks within this sector are witnessing higher volumes. Since last one year, Eicher Motors has seen consolidation within a broad range which seems to be a time-wise corrective phase within its longer term uptrend. Now, if we look at the daily chart, it is seen that the stock is trading around the 61.8% retracement support of the previous up move and also it is around its ‘200-day EMA’ support.

The ‘RSI’ oscillator has taken support around 40 and is witnessing a positive turnaround. With the sector gaining momentum, we believe that the risk reward is quite favorable to take a contra trade in this stock which could again resume the up move hereon.

Traders can look to trade with a positive bias and buy in the range of Rs.2625-2620 for potential targets of Rs.2720 and Rs.2755 in next 1-2 weeks. Traders can place a stop loss below Rs.2560 on long positions.

Eicher Motors Share Price Target

Buy Range – Rs.2625 - Rs.2620
Stop Loss – Rs.2560
Target Price 1 – Rs.2720
Target Price 2 - Rs.2755
Holding Period – 1-2 weeks


2. CANFINHOME
 

Canfinhome

After a corrective phase, the prices have started forming a ‘Higher Top Higher Bottom’ structure which indicates a resumption of the uptrend. Recently, the price upmoves in the stock was supported by higher than its daily average volumes while the correction in last few sessions is on lower volumes. The stock is trading around its support and hence, seems a good buying zone for short term traders.

Hence, traders can look to trade with a positive bias and buy in the range of Rs.628-624 for potential targets of Rs.651 and Rs.668 in next 1-2 weeks. One can place a stop loss below Rs.605 on long positions. 

CanFinHome Share Price Target - 

Buy Range – Rs.628 - Rs.624
Stop Loss – Rs.605
Target Price 1 – Rs.658
Target Price 2 - Rs.668
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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