Technical Analysis of BreakOut Stocks for Short Term Trading – March 30, 2022

breakout-stocks-for-short-term-trading

Stock Recommendations
by Ruchit Jain Last Updated: 2022-03-29T18:41:30+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. Cipla

cipla-stocks


After a corrective phase, the Nifty Pharma index has seen an up move in the last couple of weeks and stocks within this sector are witnessing buying interest. Cipla had given a breakout from its crucial resistance of 1000-1005 a couple of weeks ago and after a run-up, the stock has seen some pullback in last few days. In this pullback, the stock has formed a support at its ‘20 DEMA’ which coincides with the previous breakout zone.

Usually, the earlier resistances turn into support as per the role reversal technique in Technical Analysis. Hence, we are positive on this stock and expect an up move in the near term.

Thus, short term traders can look to buy the stock in the range of Rs.1040-1030 with a stoploss placed below Rs.995 for potential target of Rs.1118 in next 2-3 weeks. 

Cipla Share Price Target - 

Buy Range – 1040-1030
Stop Loss – 995
Target Price – 1118
Holding Period – 3-4 weeks 

2. Trent Ltd.
 

trent-stocks

 

The stock had recently given a breakout above its hurdle of 1210 with good volumes and post an up move, prices are consolidating in a range since last few days. The price breakout was supported by high volumes while the volume on price correction/consolidation is low which is a positive sign.

The ‘RSI’ oscillator is indicating a positive momentum and hence, we expect the stock to resume its uptrend soon. The previous breakout zone is now expected to act as a support on any declines and hence, traders should form a strategy to buy the stock at current levels and to add on any dip towards the support. 

Hence, traders can look to trade with a positive bias and buy at current price of Rs.1275 and add on dips at 1240. One can place a stop loss below Rs.1190 on long positions for potential targets of Rs.1360 and Rs.1420 in next 3-4 weeks. 
      
Trent Share Price Target - 

Buy level – 1275
Stop Loss – 1190
Target Price  1 – 1360
Target Price 2 - 1420
Holding Period – 3-4 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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