Technical Analysis of BreakOut Stocks for Short Term Trading – January 04, 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 which have given a breakout (or breakdown) from a consolidation phase as per technical analysis.

Best Stocks to Trade for Short Term

1. Alembic Pharma (APLLTD):

Image Source: Falcon

Post a sharp correction in the month of July, the stock has consolidated with a range. The entire consolidation was around its ‘200 EMA’ support on the weekly chart. In today’s session, the prices have given a breakout from this consolidation and the volumes today are good as compared to the recent daily average volumes. The RSI-Smoothened oscillator on the weekly chart is indicating a positive momentum and hence, we expect an up move in the stock in the near term.

Thus, short term traders can look to trade with a positive bias and buy in the range of Rs.840-835 for potential target of Rs. 888. One can place a stop loss below Rs. 812 on long positions. 

Alembic Pharma Share Price Target -

Buy Price – Rs.840 - Rs.835

Stop Loss – Rs.812

Target Price 1 – Rs.888

Holding Period – 1 week

2. Aditya Birla Fashion Retail Ltd. (ABFRL):

Image Source: Falcon

The stock has been consolidating within a range since last couple of months. However, if we look at the longer time frame charts, then it seems that the broader trend for the stock is positive and this consolidation is a time-wise correction within an uptrend. On joining the trend lines in this consolidation, it appears to be a triangle and prices have given a breakout from the pattern with rising volumes. Thus, we expect the stock to resume its broader uptrend and thus short term traders can look for buying opportunity. 

Hence, traders can look to trade with a positive bias and buy around current price of Rs.286 for potential targets of Rs. 294 and Rs. 306. One can place a stop loss below Rs. 274 on long positions. 
 

Aditya Birla Fashion Share Price Target -

Buy Price – Rs.286

Stop Loss – Rs.274

Target Price 1 – Rs.294

Target Price 2 - Rs.306

Holding Period – 1 - 2 weeks

(Cash levels given for reference)

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.