Technical Analysis of BreakOut Stocks for Short Term Trading – January 14, 2022

Stocks to Buy for Short Term - Jan 14

Stock Recommendations
by Ruchit Jain Last Updated: 2022-01-24T13:33:32+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 (or breakdown) from a consolidation phase as per technical analysis.

 

Best Stocks to Trade for Short Term

1. Sobha Ltd. (SOBHA):


Sobha Share Price Chart

Image Source: Falcon

 

The real estate space has seen decent buying interest during last year which came after a long period of underperformance. In last couple of months, the sector has seen a consolidation which just seems to be a time-wise correction and now the momentum seems to be resuming. Sobha Limited has been forming a ‘Higher Top Higher Bottom’ structure since few months and post some consolidation, the stock has given a breakout from a ‘Cup and Handle’ pattern which indicates a resumption of the uptrend. The volumes during the price upmoves were good while during corrective phase, volumes were low which is a positive sign.

Thus, short term traders can look to trade with a positive bias and buy in the range of Rs.910-900 for a potential target of Rs. 960 in next 1-2 weeks. One can place a stop loss below Rs. 874 on long positions. 
 

Sobha Share Price Target -

Buy Range – Rs.910 - Rs.900

Stop Loss – Rs.874

Target Price – Rs.960

Holding Period – 1-2 weeks

 

 

2. Tata Consumer Products Ltd. (TATACONSUM):

 

 

Tata Consumer Products Share Price Chart

Image Source: Falcon

 

In last four months, the stock has seen a price wise correction and prices have corrected from Rs. 889 to sub-700 levels. In last few trading sessions, prices have consolidated around its ‘200 DMA’ and we witnessed a good buying interest in today’s session. The price upmove was supported by high volumes and it has also resulted in a breakout above its short term resistances. Hence, we believe that the corrective phase for the stock is over and thus we expect an upmove in the stock in the short term.

Hence, traders can look to trade with a positive bias and buy in the range of 760-755 for a potential targets of Rs.785 and Rs.815 in next 3-4 weeks. One can place a stop loss below Rs.727 on long positions.
 

Tata Consumer Products Share Price Target -

Buy Range – Rs.760 - Rs.755

Stop Loss – Rs.678

Target Price 1 – Rs.785

Target Price 2 - Rs.815

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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