Technical Analysis of BreakOut Stocks for Short Term Trading – March 04 2022

BreakOut Stocks

Stock Recommendations
by Ruchit Jain Last Updated: 2022-03-05T23:54:43+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 – one with a bearish set up and one with a bullish set up as per technical analysis.
 

Best Stocks to Trade for Short Term


1. Bajaj Finance 
 

breakout

 

Recently, the stock has consolidated in a range above its ‘200 DMA’. However, towards the end of the week the prices gave a breakdown below the support with a gap down. The ‘RSI’ oscillator is indicating a weak momentum while the short term moving average is below the medium term indicating a short term downtrend. We expect further correction in the stock in the short term and hence, short term traders should look to sell the stock on any pullback move.

Hence, short term traders can look for shorting opportunities in the range of Rs.6570-6590 with a stoploss placed above Rs.6725 for potential short term targets of 6300. 

(The given levels are of cash segment which can be used as reference to trade in futures segment)

BAJAJ FINANCE Share Price Target - 

Sell Range – Rs.6570 - Rs.6590
Stop Loss – Rs.6725
Target Price 1 – Rs.6300
Holding Period – 1 week
(The given levels are of cash segment which can be used as reference to trade in futures segment)


2. ITC
 

breakout

 

While the stock did not participate in the recent market uptrend, it is now witnessing buying interest in such an uncertain environment due to its low volatility. The prices up move during the week have been supported by rising volumes while the momentum oscillators are indicating positive traction. Prices have given a breakout above its ‘Bollinger Bands’ which are rising now and hence, we expect a positive trend in the stock in the near term.

Hence, traders can look to trade with a positive bias and buy the stock in the range of Rs.225-220 for potential targets of Rs.242 and Rs.250 in the near term. One can place a stop loss below Rs.210 on long positions.         

  
ITC Share Price Target -
 
Buy Range – Rs.225 - Rs.220
Stop Loss – Rs.210
Target Price 1 –Rs.242
Target Price 2 - Rs.250
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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