Ruchit Jain Ruchit Jain 7th September 2023

Technical Analysis of BreakOut Stocks for Short Term Trading – January 21, 2022

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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. Bharat Dynamics Limited (BDL):


Bharat Dynamics Price Chart

Image Source: Falcon

 

In the recent corrective phases, the stock has managed to find support around its ‘200 EMA’ on the daily chart and in this month, we have witnessed a decent buying interest in the stock. Prices have seen an up move supported by good volumes while the stock has also given a breakout from its resistance. The weekly and monthly momentum readings are indicating a positive structure and hence, we expect the stock prices to continue its up move in the short term.

Hence, traders can look to trade with a positive bias and buy in the range of Rs.460-450 for potential targets of Rs. 480 and Rs.500 in next 3-4 weeks. One can place a stop loss below Rs.435 on long positions.

 

Bharat Dynamics Share Price Target -

Buy Range – Rs.460 - Rs.450

Stop Loss – Rs.435

Target Price 1 – Rs.480

Target Price 2 – Rs.500

Holding Period – 1-2 weeks

 

 

2. Hitachi Energy India Ltd. (POWERINDIA):

 

Power India Price Chart

 

Image Source: Falcon

 

The stock has been forming a ‘Higher Top Higher Bottom’ structure on the weekly charts and is thus in an uptrend. In last couple of months, the stock went through a time-wise correction and prices have given a breakout from this consolidation during this week. The price up move on Friday was supported by good volumes which indicate that the stock has resumed its broader uptrend. The breakout zone of 2850-2800 should now become a support on any declines and hence, short term traders can adopt a strategy to buy the stock at current levels and add on dips towards the mentioned support.

Thus, traders can look to trade with a positive bias and buy around Rs.3000 for a potential target of Rs. 3450 in next 3-4 weeks. One can place a stop loss below Rs. 2,750 on long positions.

 

Power India Share Price Target -

Buy Price – Rs.3,000

Stop Loss – Rs.2,750

Target Price – Rs.3,450

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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