Breakout Stocks: Here's why Power Grid and Time TechnoPlast are good short term picks

A breakout is a phase where stock price moves outside a consolidation with increased volumes. Such breakouts generally lead to good price movement in the short term, and this is one of the proven methods for selecting buy best share to trade for the short term.

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In this column, Ruchit Jain, Lead Research, 5paisa.com informs readers of the breakout stocks that can be considered as the 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 that gave a breakout above their resistance levels with good volumes should be referred for bullish trades which stocks which break 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.

Ruchit Jain, Lead Research, 5paisa.com picked two stocks that have given a breakout from a consolidation phase as per technical analysis:

Power Grid: Buy| LTP Rs 214| Buy Range 214-212| Target Rs 220-230| Stop Loss Rs 205| Holding Period – 1-2 weeks

The PSU stocks have recently gained investors’ attention which can be seen from the rising volumes in the PSU names. Within this space, Power Grid has been forming a ‘Higher Top Higher Bottom’ structure which is a sign of an uptrend.

In the last few weeks, the stock has seen a consolidation phase within an uptrend which seemed to be a time-wise correction.

Last week, the stock has given a breakout from this consolidation indicating a resumption of its uptrend.

The volumes in breakout are better than its daily average while the RSI oscillator is indicating an increasing momentum.

Thus, short-term traders can look to trade with a positive bias and buy in the range of Rs.214-212 for potential targets of Rs. 220 and Rs. 230 in the next 1-2 weeks. One can place a stop loss below Rs. 205 on long positions.

Time TechnoPlast: Buy Range – 88-86| LTP Rs 86| Target Rs 93-97| Stop Loss Rs 83| Holding Period – 1 -2 weeks

This stock had witnessed a decent buying interest during the first half of the calendar year 2021. However, price entered a corrective phase since the month of July and the stock has seen some price-wise as well as time-wise correction in the last few months.

The stock consolidated for a long time around its ‘200 DMA’ support and in the last few days the prices have picked up momentum along with good volumes.

The stock is on the verge of a breakout from its swing high resistance and looking at the price volume action, we expect it to happen soon.

We expect an up move in the stock in the short term and hence, one should look for buying opportunities in this stock.

Traders can look to trade with a positive bias and buy in the range of 88-86 for potential targets of Rs.93 and Rs.97 in the next 1-2 weeks. One can place a stop loss below Rs.83 on long positions.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)