Stocks For Short Term Trading November 17, 2021: Technical Analysis of BreakOut Stocks

Breakout Stocks: What are the positive 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. In this column, we inform our readers the stocks which have given a breakout from the resistance as per technical analysis and can be good stocks to buy for short term. However, traders are advised to follow the given levels and trade with proper money management.

Today, we have picked two stocks which have given a breakout as per technical analysis

Best Stocks to Buy for Short Term

1. Welcorp

Image Source: Falcon

The stock price has been going through a consolidation phase since the month of June 2021 and it has formed an “Inverted Head and Shoulders” pattern on the daily chart. This pattern signals a bullish trade set up and traders should enter into a long position when the prices rise above the resistance of the neckline. As seen in the graph, the stock has given a breakout from the neckline in today’s session and volumes on breakout are also good compared to its daily average volumes. Hence, we are expecting an upmove in the stock in the short term.

Traders can look to buy this stock in the range of Rs. 152-150 with a stop loss placed below Rs. 144 for potential targets of Rs. 160 and Rs. 165 in the short term. 
 

Welspun Corp Ltd. (WELCORP) Share Price Target

- Buy Range: Rs.152-150

- Stop Loss: Rs.144

- Target 1: Rs.160

- Target 2: Rs.165

- Holding Period: 2 weeks

2. Mahindra & Mahindra (M&M)

Image Source: Falcon

The Nifty Auto index has given a breakout from a consolidation phase and hence, stocks from the Auto sector could outperform in the short term. Within this sector, Mahindra & Mahindra has witnessed good buying interest recently and seen in the given chart, prices have given a breakout from its previous high. IT has also been forming a ‘Higher Top Higher Bottom’ structure which indicates an uptrend and hence, short term traders should look to buy this stock on any declines. The support for the stock is now placed in the range of Rs. 950-940 and any dips in this range should be considered as buying opportunity.
 

Traders can look to buy this stock in the range of Rs. 950-940 with a stop loss below Rs.920 for a potential target of Rs.1000-1020 in the short term

Mahindra & Mahindra Ltd. (M&M) Share Price Target

- Buy Range: Rs.950-940

- Stop Loss: Rs.920

- Target 1: Rs.1000-Rs.1020

- Holding Period: 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.