The Top 10 Stocks to Watch This Week for Possible Breakouts

Picking a winning trade on a consistent basis is not simply a stroke of luck. It’s the result of calculated screening, planning, and deliberation.

With this in mind, we have started a new weekly series on our top 10 stocks to watch this week — stocks that look poised for a possible breakout in the coming days. Traders should add these stocks to their watchlist now.

The Top 10 Stocks to Watch This Week for Possible Breakouts

Sl # Name of the Stock Stock Ticker Last Close Buy Level(s) Reason
1 Black Knight, Inc. NYSE: BKI $64.63 $64.80 Symmetrical Triangle Pattern Breakout
2 CF Industries Holdings, Inc. NYSE: CF $90.49 $90.90 Falling Wedge Pattern Breakout
3 Flowers Foods, Inc. NYSE: FLO $27.52 $28.00 Symmetrical Triangle Pattern
4 PayPal Holdings, Inc. NASDAQ: PYPL $80.80 $87.20 Downtrend Channel Breakout
5 Credo Technology Group Holding Ltd NASDAQ: CRDO $18.63 $18.80 Symmetrical Triangle Pattern Breakout
6 Cloudflare, Inc. NYSE: NET $60.10 $64.50 Falling Wedge Pattern Breakout
7 Borr Drilling Limited NYSE: BORR $6.71 $6.80 Symmetrical Triangle Pattern Breakout
8 WisdomTree, Inc. NYSE: WT $6.02 $6.20 Downtrend Channel Breakout
9 Corsair Gaming, Inc. NASDAQ: CRSR $16.91 $17.10 Symmetrical Triangle Pattern Breakout
10 PBF Energy Inc. NYSE: PBF $42.27 $45.20 Symmetrical Triangle Pattern

Important: Typically, these trades offer a risk: reward ratio of 1:2 or 1:3 in the next 6 months, which implies 2x to 3x rewards when compared to risks. So, be sure to set your stop-loss levels and target prices accordingly to manage your risk. In addition, these trade ideas are triggered using daily closing prices, not intra-day pricing. So, if you participate in these trades, make sure that you only buy the stock once its daily close is above the recommended price level.

That said, here are the top 10 stocks to watch for a breakout, in no particular order.

#1 Black Knight, Inc. (NYSE: BKI)

Sector: Technology | Software – Infrastructure

Reason: Symmetrical Triangle Pattern Breakout

A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.

A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.

Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for BKI is if the stock closes above the immediate resistance level of $64.80. This is marked in the chart below as a green color dotted line.

Daily chart – BKI

BKI – Symmetrical Triangle Pattern Breakout

#2 CF Industries Holdings, Inc. (NYSE: CF)

Sector: Basic Materials | Agricultural Inputs

Reason: Falling Wedge Pattern Breakout

A falling wedge pattern is formed by joining two downward-sloping, converging trendlines having a contracting range. The pattern appears to be wide at the top and continues to contract as prices fall. A breakout from a falling wedge pattern can indicate either reversal or continuation depending on where the pattern appeared in the trend.

A stock that has broken out of a falling wedge pattern would have gained momentum and would have the potential to move higher.

Buy Level(s): The stock has currently broken out of a falling wedge pattern. However, the ideal buy level for CF is above the nearest resistance level of $90.90. This is marked in the chart below as a green color dotted line.

Daily chart – CF

CF – Falling Wedge Pattern Breakout

#3 Flowers Foods, Inc. (NYSE: FLO)

Sector: Consumer Defensive | Packaged Foods

Reason: Formation of a Symmetrical Triangle Pattern

A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.

A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.

Buy Level(s): The ideal buy level for FLO is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $28.00. This is marked in the chart below as a green color dotted line.

Daily chart – FLO

FLO – Symmetrical Triangle Pattern

#4 PayPal Holdings, Inc. (NASDAQ: PYPL)

Sector: Financial | Credit Services

Reason: Downtrend Channel Breakout

A downtrend or descending channel is the price action contained between downward sloping parallel lines. It is formed by two lines that are drawn by connecting the lower highs and lower lows of a stock’s price. Even though this is typically a bearish pattern, a breakout from the upper rail of this pattern is considered a good bullish indication.

Buy Level(s): The daily chart shows that the stock has currently broken out of a downtrend channel. However, there is a near-term resistance level for the stock. Hence, the ideal buy level for PYPL is if the stock has a daily close above $87.20. This is marked in the chart below as a green color dotted line.

Daily chart – PYPL

PYPL – Downtrend Channel Breakout

#5 Credo Technology Group Holding Ltd (NASDAQ: CRDO)

Sector: Technology | Communication Equipment

Reason: Symmetrical Triangle Pattern Breakout

A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.

A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.

Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for CRDO is if the stock closes above the immediate resistance level of $18.80. This is marked in the chart below as a green color dotted line.

Daily chart – CRDO

CRDO – Symmetrical Triangle Pattern Breakout

#6 Cloudflare, Inc. (NYSE: NET)

Sector: Technology | Software – Infrastructure

Reason: Falling Wedge Pattern Breakout

A falling wedge pattern is formed by joining two downward-sloping, converging trendlines having a contracting range. The pattern appears to be wide at the top and continues to contract as prices fall. A breakout from a falling wedge pattern can indicate either reversal or continuation depending on where the pattern appeared in the trend.

A stock that has broken out of a falling wedge pattern would have gained momentum and would have the potential to move higher.

Buy Level(s): The stock has currently broken out of a falling wedge pattern. However, the ideal buy level for NET is above the nearest resistance level of $64.50. This is marked in the chart below as a green color dotted line.

Daily chart – NET

NET – Falling Wedge Pattern Breakout

#7 Borr Drilling Limited (NYSE: BORR)

Sector: Energy | Oil & Gas Drilling

Reason: Symmetrical Triangle Pattern Breakout

A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.

A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.

Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for BORR is if the stock closes above the immediate resistance level of $6.80. This is marked in the chart below as a green color dotted line.

Daily chart – BORR

BORR – Symmetrical Triangle Pattern Breakout

#8 WisdomTree, Inc. (NYSE: WT)

Sector: Financial | Asset Management

Reason: Downtrend Channel Breakout

A downtrend or descending channel is the price action contained between downward sloping parallel lines. It is formed by two lines that are drawn by connecting the lower highs and lower lows of a stock’s price. Even though this is typically a bearish pattern, a breakout from the upper rail of this pattern is considered a good bullish indication.

Buy Level(s): The daily chart shows that the stock has currently broken out of a downtrend channel. However, there is a near-term resistance level for the stock. Hence, the ideal buy level for WT is if the stock has a daily close above $6.20. This is marked in the chart below as a green color dotted line.

Daily chart – WT

WT – Downtrend Channel Breakout

#9 Corsair Gaming, Inc. (NASDAQ: CRSR)

Sector: Technology | Computer Hardware

Reason: Symmetrical Triangle Pattern Breakout

A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.

A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.

Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for CRSR is if the stock closes above the immediate resistance level of $17.10. This is marked in the chart below as a green color dotted line.

Daily chart – CRSR

CRSR – Symmetrical Triangle Pattern Breakout

#10 PBF Energy Inc. (NYSE: PBF)

Sector: Energy | Oil & Gas Refining & Marketing

Reason: Formation of a Symmetrical Triangle Pattern

A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.

A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.

Buy Level(s): The ideal buy level for PBF is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $45.20. This is marked in the chart below as a green color dotted line.

Daily chart – PBF

PBF – Symmetrical Triangle Pattern

Happy Trading!

Trades of The Day Research Team

See What One Ticker... One Trade... EVERY WEEK... Can Do for YOU [sponsor]
New research proves that trading one ticker every week has had the ability to produce extraordinary gains... Including a rare 2,614% in under 11 days. See this groundbreaking new discovery for yourself. SHOW ME ONE TICKER PAYOUTS