Technical Analysis of BreakOut Stocks for Short Term Trading – March 17, 2022

breakout-stocks

Stock Recommendations
by Ruchit Jain Last Updated: 2022-03-28T16:55:20+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. JSW STEEL
 

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The Metal space has recently seen a relative outperformance during the market correction and the Nifty Metal index has resumed its broader uptrend from its ‘200 DEMA’. Within this sector, JSW Steel has recovered smartly from its recent swing lows and has now given a breakout from a falling trendline resistance. The volumes on breakout are better than its average and the RSI oscillator is hinting at a positive momentum. Hence, we expect a continuation of the uptrend in the short term.

Thus, short term traders can look to buy the stock in the range of Rs.685-680 with a stoploss placed below Rs.655 for potential target of Rs.725-735 in next 2-3 weeks. 

JSW Steel Share Price Target -

Buy Range – 685-680
Stop Loss – 665
Target Price – 725-735
Holding Period – 1-2 weeks 


2. Reliance Ind
 

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Since mid-October 2021, the stock has seen a price-wise as well as time-wise correction from its highs. In last one week, the stock has given a pullback from its support and had given a breakout above its hurdle in Thursday’s session. The Channel breakout indicates a probability of a resumption of the broader uptrend and hence, we expect the stock to rally higher in the near term. The RSI oscillator is also indicating a positive momentum. 

Traders can look to trade with a positive bias and buy the stock in the range of Rs.2460-2450 for potential target of Rs.2600 in the near term. One should place a stop loss below Rs.2380 on long positions.         

RELIANCE IND Share Price Target - 

Buy Range – 2460-2450
Stop Loss – 2380
Target Price  – 2600
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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