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 | Amazon.com Inc. | NASDAQ: AMZN | $223.30 | $223.60 | Symmetrical Triangle Pattern Breakout |
| 2 | JPMorgan Chase & Co | NYSE: JPM | $287.11 | $290.00 | Ascending Triangle Pattern Breakout |
| 3 | IREN Ltd | NASDAQ: IREN | $14.00 | $14.30 | Symmetrical Triangle Pattern Breakout |
| 4 | PepsiCo Inc. | NASDAQ: PEP | $131.04 | $133.50 | Falling Wedge Pattern |
| 5 | NVIDIA Corp. | NASDAQ: NVDA | $157.75 | $159.00 | Symmetrical Triangle Pattern Breakout |
| 6 | Nike, Inc. | NYSE: NKE | $72.04 | $73.40 | Symmetrical Triangle Pattern Breakout |
| 7 | American Express Co. | NYSE: AXP | $317.19 | $320.80 | Symmetrical Triangle Pattern Breakout |
| 8 | Arm Holdings plc. ADR | NASDAQ: ARM | $165.46 | $167.30 | Symmetrical Triangle Pattern Breakout |
| 9 | Caterpillar Inc. | NYSE: CAT | $384.71 | $389.40 | Symmetrical Triangle Pattern Breakout |
| 10 | Vale S.A. ADR | NYSE: VALE | $9.74 | $9.90 | 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 Amazon.com Inc. (NASDAQ: AMZN)
Sector: Consumer Cyclical • Internet Retail
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 AMZN is if the stock closes above the immediate resistance level of $223.60. This is marked in the chart below as a green color dotted line.
Daily chart – AMZN
AMZN – Symmetrical Triangle Pattern Breakout
#2 JPMorgan Chase & Co (NYSE: JPM)
Sector: Financial • Banks – Diversified
Reason: Breakout From an Ascending Triangle Pattern
An ascending triangle pattern is a bullish pattern formed by drawing a horizontal line along the swing highs, and a rising trendline along the swing lows. These two lines result in the formation of a triangle. A breakout from this pattern is typically a strong bullish indication.
Buy Level(s): Although the stock has broken out of the ascending triangle pattern, the ideal buy level for JPM is if the stock has a daily close above the near-term resistance level of $290.00. This is marked in the chart below as a green color dotted line.
Daily chart – JPM
JPM – Ascending Triangle Pattern Breakout
#3 IREN Ltd (NASDAQ: IREN)
Sector: Financial • Capital Markets
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 IREN is if the stock closes above the immediate resistance level of $14.30. This is marked in the chart below as a green color dotted line.
Daily chart – IREN
IREN – Symmetrical Triangle Pattern Breakout
#4 PepsiCo Inc. (NASDAQ: PEP)
Sector: Consumer Defensive • Beverages – Non-Alcoholic
Reason: Formation of a Falling Wedge Pattern
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 ideal buy level for PEP is if the stock breaks out of the falling wedge pattern, at a price of around $133.50. This is marked in the chart below as a green color dotted line.
Daily chart – PEP
PEP – Falling Wedge Pattern
#5 NVIDIA Corp. (NASDAQ: NVDA)
Sector: Technology • Semiconductors
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 NVDA is if the stock closes above the immediate resistance level of $159.00. This is marked in the chart below as a green color dotted line.
Daily chart – NVDA
NVDA – Symmetrical Triangle Pattern Breakout
#6 Nike, Inc. (NYSE: NKE)
Sector: Consumer Cyclical • Footwear & Accessories
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 NKE is if the stock closes above the immediate resistance level of $73.40. This is marked in the chart below as a green color dotted line.
Daily chart – NKE
NKE – Symmetrical Triangle Pattern Breakout
#7 American Express Co. (NYSE: AXP)
Sector: Financial • Credit Services
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 AXP is if the stock closes above the immediate resistance level of $320.80. This is marked in the chart below as a green color dotted line.
Daily chart – AXP
AXP – Symmetrical Triangle Pattern Breakout
#8 Arm Holdings plc. ADR (NASDAQ: ARM)
Sector: Technology • Semiconductors
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 ARM is if the stock closes above the immediate resistance level of $167.30. This is marked in the chart below as a green color dotted line.
Daily chart – ARM
ARM – Symmetrical Triangle Pattern Breakout
#9 Caterpillar Inc. (NYSE: CAT)
Sector: Industrials • Farm & Heavy Construction Machinery
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 CAT is if the stock closes above the immediate resistance level of $389.40. This is marked in the chart below as a green color dotted line.
Daily chart – CAT
CAT – Symmetrical Triangle Pattern Breakout
#10 Vale S.A. ADR (NYSE: VALE)
Sector: Basic Materials • Other Industrial Metals & Mining
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 VALE is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $9.90. This is marked in the chart below as a green color dotted line.
Daily chart – VALE
VALE – Symmetrical Triangle Pattern
Happy Trading!
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