Technical Analysis of BreakOut Stocks for Short Term Trading – March 08 2022

BreakOut Stocks for Short Term Trading

Stock Recommendations
by Ruchit Jain Last Updated: 2022-03-08T18:30:27+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 – one with a bullish divergence and one with a consolidation breakout set up as per technical analysis

 

Best Stocks to Trade for Short Term


1. DLF

DLF

 

Along with the broader markets, the stock has seen a price wise correction in last couple of months. However, prices have now reached its support of ’20 EMA’ on the monthly charts and simultaneously RSI has shown a positive divergence on the daily chart. Such divergence at support usually leads to a pullback or a reversal and looking at the charts, we expect a short pullback move towards its swing high in next few days.
 

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Hence, traders can look to trade with a positive bias and buy in the range of Rs.329-325 for a potential target of Rs.354 in next 4-5 days. Traders can place a stop loss below Rs.313 on long positions.

DLF Share Price Target - 

Buy Range – Rs.329 - Rs.325
Stop Loss – Rs.313
Target Price 1 – Rs.354
Holding Period – 1 week


2. WIPRO

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In last few days, the IT sector has relatively outperformed the broader markets and off-late we have witnessed some positive momentum in stocks within this sector. Wipro has consolidated within a narrow range post a corrective phase and prices have no given a breakout from its immediate resistance.

The volumes during the recent consolidation phase were low, but have started increasing along with price upmove. The ‘RSI’ oscillator on the daily chart is indicating a positive momentum and hence, we could see a continuation of buying interest in the stock in the near term.

Hence, traders can look to trade with a positive bias and buy in the range of Rs.587-584 for a potential target of Rs.620 the next 1-2 weeks. One can place a stop loss below Rs.568 on long positions. 
  
WIPRO Share Price Target - 

Buy Range – Rs.587 - Rs.584
Stop Loss – Rs.568
Target Price  – Rs.620
Holding Period – 1 week 

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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