Technical Analysis of BreakOut Stocks for Short Term Trading – March 29, 2022
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. Bharti Airtel
Post a price wise correction, the stock has recovered from its ‘200 DMA’ support and has now given breakout from an ‘Inverted Head and Shoulders’ pattern. This pattern indicates the bullish trend for the stock and short term moving average has also given a positive crossover over the medium term. The ‘RSI’ oscillator is indicating a positive momentum and hence, we expect an up move in the stock in the short term.
Thus, short term traders can look to buy the stock in the range of Rs.733-727 with a stoploss placed below Rs.696 for potential targets of Rs.770 and Rs.797 next 3-4 weeks.
Bharti Airtel Share Price Target -
Buy Range – 733-727
Stop Loss – 696
Target Price 1 – 770
Target Price 2 - 797
Holding Period – 3-4 weeks
Along with the broader markets, the stock has seen a price wise correction in the last couple of months. However, the stock has now approached its support zone and is consolidating around its ‘200 DMA’ since last couple of weeks.
The lower time frame charts indicate a formation of a ‘Cup and Handle’ pattern and this bullish pattern around the support hints at probability of a trend reversal.
The ‘RSI-Smoothed’ oscillator is also indicating at a positive momentum and hence, we expect the stock to move higher in the near term.
Traders can look to trade with a positive bias and buy the stock in the range of Rs.1570-1560 for potential targets of Rs.1640 and Rs.1690 in the near term. One should place a stop loss below Rs.1500 on long positions.
BEML Share Price Target -
Buy Range – 1570-1560
Stop Loss – 1500
Target Price 1 – 1640
Target Price 2 - 1690
Holding Period – 2-3 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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