Technical Analysis of BreakOut Stocks for Short Term Trading – December 22, 2021 - Godrej Consumer, Aurobindo Pharma

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. Godrej Consumer Products (GODREJCP):

Image Source: Falcon

The stock has seen a price-wise correction since mid-September and has now formed a support base in the range of 870-880. In last couple of sessions, prices have pulled higher sharply and have given a breakout from a falling trendline resistance. The ‘RSI’ oscillator too has moved above its recent range, which indicates pick up in momentum and hence, we expect the stock to give good returns in the short term.

Traders can look to trade with a positive bias and buy in the range of 950-940 for a potential target around Rs. 992. One can place a stop loss below Rs. 926 on long positions.
 

Godrej Consumer Share Price Target -

Buy Range – Rs.950 - Rs.940

Stop Loss – Rs.926

Target Price – Rs.992

Holding Period – 1 week

2. Aurobindo Pharma (AUROPHARMA):

The Nifty Pharma index has formed a good support base in the range of 13000-13200 and is now witnessing an upmove. We believe that the corrective phase is over for this sector and stocks from this space could give good returns in the short term. Within the pharma stocks, Aurobindo Pharma is positively placed as the stock has recently formed a ‘Higher Top Higher Bottom’ structure and has now given a breakout from its immediate resistance.  The recent consolidation also has led to formation of an ‘Inverted Head and Shoulders’ pattern and prices have given a close above the neckline of the pattern. The ‘RSI’ oscillator too has moved above its recent range, which indicates pick up in momentum and hence, we expect the stock to deliver good returns in the short term.

Traders can look to trade with a positive bias and buy around the current price of Rs. 718 for potential targets of Rs. 740 and Rs. 758. One can place a stop loss below Rs. 695 on long positions. 

Aurobindo Pharma Share Price Target -

Buy Price – Rs.718

Stop Loss – Rs.695

Target Price 1 – Rs.740

Target Price 2 - Rs.758

Holding Period – 1 week

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.