3 Breakout Stocks to Buy Right Now

With stocks continuing to court record highs and a dovish Federal Reserve meeting expected on the horizon, the backdrop continues to favor a bullish bias. In today’s gallery, we’re going to offer up three breakout stocks to buy.

They all boast several attractive technical characteristics.

First and foremost is the price trend, which is zooming to the moon.

Second is relative strength with market-beating returns so far this year … third is a recent basing pattern that provides low-risk entries.

Together, these factors combine to present some exciting trading opportunities for the week ahead.

As usual, we’ll offer up specific trade ideas for each pattern.

Let’s take a closer look at three stocks to buy.

Adobe (ADBE)

Source: ThinkorSwim

The long-term trend of Adobe (NASDAQ:ADBE) belongs in a class of its own. It’s up ten-fold since 2012, and short of one hiccup in the fourth quarter 2018, it has seen virtually zero giveback along the way. To deliver such gains over seven years is inspiring. But to do it with almost no corrections or nasty volatility along the way?

It’s the ultimate gift from the market gods.

There’s no doubt Adobe has been one of the best stocks to buy of this bull market. During this year’s ascent, we’ve seen a modest amount of chop along the way, but each pausing period has ultimately paved the way for higher prices. I see no reason why the past month’s high base won’t end similarly.

Look for a breakout over $313 resistance, then deploy bullish trades. With implied volatility in the tank and ADBE stock’s hefty price tag, I like bull call spreads. Buy the Oct $310/$320 bull call spread for around $4.75.

Costco (COST)

Source: ThinkorSwim

Costco (NASDAQ:COST) finds itself in a similar position. While its multi-year gains haven’t been as jaw-dropping as ADBE, Costco has still been a fantastic stock to buy.

The past two years have seen a surge in upside momentum signaling the uptrend is on strong footing. From a charting perspective, this year’s trend has seen multiple bases and upside breakouts. Each has seen solid follow through, providing ample opportunity for breakout traders seeking stocks to buy.

Currently, COST stock has built a two-week consolidation zone near $280. With the 20-day moving average fast approaching, the time is nigh for an upside pop. Watch for a breach of $284.31, then enter bullish plays. Like Adobe, the cheap implied volatility and the expensive price tag of Costco make it a good candidate for call spreads.

Buy the Oct $280/$290 bull call spread for around $4.75.

Okta (OKTA)

Source: ThinkorSwim

Okta (NASDAQ:OKTA) is the more speculative pick of the bunch. Since its 2017 IPO, the San Francisco-based software company has been a favorite among momentum traders. One glance at its price chart reveals all you need to know. Since opening at $23.56, OKTA stock has risen 474%

This year OKTA is on pace for another barn burner. Its year-to-date gains have already eclipsed 110%. The best way to play it has been buying breakouts along the way. We’ve seen many bases deliver powerful upside runs. The current three-week consolidation zone presents another alluring setup.

Today’s drop suggests the stock may need some more time before an upside break transpires. Watch for a rise above $141.85, then enter bullish trades. The liquidity in its options is so-so, at best, so be sure to use limit orders. Buying the Nov $135/$145 bull call spread for around $4.60 if it breaks out is worth consideration.

— Tyler Craig

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Louis Navellier has a track record that’s the envy of Wall Street. For over 20 years he's outperformed the market and discovered Apple at $4... Oracle at $6... and Amazon at $40 along the way. Here's what he's saying to buy now.

Source: Investor Place