Technical Analysis of BreakOut Stocks for Short Term Trading – February 15, 2022

Technical Analysis of BreakOut Stocks for Short Term Trading

Stock Recommendations
by Ruchit Jain Last Updated: 2022-02-15T18:27:27+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. INDIGO

indigo

 

Post a decent time-wise correction, the stock has given a breakout from its consolidation during last week. Along with the market momentum, the prices have seen a pull-back move in this week and have retested the breakout zone. As per the role reversal technique in technical analysis, the previous resistance usually becomes support on pullback after breakout and hence, we expect the stock to rally from the current price in the short term. Also, the volumes in the recent up move were good which indicated a buying interest in the stock.

Traders can look to trade with a positive bias and buy in the range of Rs.2190-2180 for potential targets of Rs.2290 and Rs.2380 in next 3-4 weeks. Traders can place a stop loss below Rs. 2080 on long positions.

INDIGO Share Price Target - 

Buy Range – Rs.2190 - Rs.2180
Stop Loss – Rs.2080
Target Price 1 – Rs.2290
Target Price 2 - Rs.2380
Holding Period – 3-4 weeks


2. Bandhan Bank
 

Bandhan Bank

 

After an underperformance in the banking space in the calendar year 2021, the stock has witnessed a decent buying interest from its lows in last few weeks. The price up move has been supported by increasing volumes while the intermediate corrections are more of time-wise correction rather than price corrections.  The stock has given a breakout from its falling trendline resistance and is holding above its short term support in spite of such volatility in the banking space in last few days. This relative strength is positive and hence, we could see a positive momentum in the stock as the banking space resumes its uptrend.
Hence, traders can look to trade with a positive bias and buy in the range of Rs.326-322 for potential targets of Rs.342 and Rs.354 in the next 2-3 weeks. One can place a stop loss below Rs.310 on long positions. 

Bandhan Bank Share Price Target - 

Buy Range – Rs.326 - Rs.322
Stop Loss – Rs.310
Target Price 1 – Rs.342
Target Price 2 - Rs.354
Holding Period – 2 -3 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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