Technical Analysis of BreakOut Stocks for Short Term Trading – January 06, 2022
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. Tata Power (TATAPOWER):
Image Source: Falcon
Since the pandemic lows, this stock has seen a huge buying interest amongst market participants and had risen sharply without any meaningful correction till the month of October 2021. However, in the later half of the October, prices took a pause and retraced some of the gains along with the broader market. But rather than a price correction, the stock went through a time-wise correction as it has consolidated within a broad range in last two and a half months. Now in today’s session, prices have hinted at initial signs of a resumption of the momentum as it is on the verge of a breakout. Looking at the price action and the RSI readings, we expect a positive momentum in the stock and hence, it could resume its broader uptrend.
Thus, short term traders can look to trade with a positive bias and buy in the range of Rs.228-226 for potential target of Rs. 243-245. One can place a stop loss below Rs. 219 on long positions.
Tata Power Share Price Target -
Buy Range – Rs.228 - Rs.226
Stop Loss – Rs.219
Target Price 1 – Rs.243 - Rs.245
Holding Period – 1 week
2. UPL Ltd. (UPL):
Image Source: Falcon
The stock has been consolidating within a broad range since last seven months and has not seen any directional move. In this consolidation, whenever the prices have traded below the 700 mark, the stock has witnessed good buying interest. After this long consolidation, the stock finally witnessed a good momentum today in which it gave a breakout above its trendline resistance. Also, the volumes were good since the opening ticks itself today indicating buying interest in the counter. Thus, we expect the stock to resume its broader uptrend and thus short term traders can look for buying opportunity.
Hence, traders can look to trade with a positive bias and buy in the range of Rs.782-778 for potential targets of Rs. 805 and Rs. 820. One can place a stop loss below Rs. 759 on long positions.
UPL Share Price Target -
Buy Range – Rs.782 - Rs.778
Stop Loss – Rs.759
Target Price 1 – Rs.805
Target Price 2 - Rs.820
Holding Period – 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.
In the heart of the bustling Indian stock market, a tale of triumph unfolded on November 30th, as Tata Technologies made an awe-inspiring debut. The curtains lifted at ₹1,200 apiece on the National Stock Exchange (NSE), casting a premium spell of 140% over the issue price of ₹500 per share. This stellar entry marked the grandest listing since November 2021, echoing through the financial corridors with waves of excitement.
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