Technical Analysis of BreakOut Stocks for Short Term Trading – March 11, 2022

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Stock Recommendations
by Ruchit Jain Last Updated: 2022-03-12T23:27:39+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 with a consolidation breakout set up as per technical analysis

Best Stocks to Trade for Short Term


1.  Laurus Lab

breakout-stocks


 

In last few weeks, the stock has consolidated in a range and has relatively outperformed the broader markets. On Friday, the prices gave a breakout from the resistance end of this consolidation with good volumes. Prices have crossed the upper ‘Bollinger Band’ which is indicating a positive trend. The ‘RSI Oscillator’ too is pointing towards a positive momentum and hence, we expect an up move in the stock in the near term.

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Hence, short term traders can look to buy the stock in the range of Rs.578-574 with a stoploss placed below Rs.550 for potential short term targets of Rs.627. 

Laurus Lab Share Price Target - 

Buy Range – Rs.578 - Rs.574
Stop Loss – Rs.550
Target Price – Rs.627


2. Inox Leisure

breakout-stocks


 

The price action in last few months has led to formation of a ‘Cup and Handle’ pattern on the daily chart. This continuation pattern is formed amidst a broader uptrend and hence a breakout from this neckline should lead to resumption of a positive momentum. A move above Rs.430 will lead to a confirmation and hence, traders should look to buy the stock on breakout.

Traders can look to trade with a positive bias and buy the stock above Rs.430 for potential target of Rs.460 in the near term. One can then place a stop loss below Rs.412 on long positions.         

Inox Leisure Share Price Target - 

Buy Price – Above 430
Stop Loss – 412
Target Price  – 460
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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