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 | Joby Aviation Inc. | NYSE: JOBY | $10.55 | $10.80 | Symmetrical Triangle Pattern Breakout |
| 2 | Verint Systems, Inc. | NASDAQ: VRNT | $21.51 | $21.70 | Downtrend Channel Breakout |
| 3 | Walmart Inc. | NYSE: WMT | $98.36 | $100.30 | Symmetrical Triangle Pattern |
| 4 | Bank Of America Corp | NYSE: BAC | $48.93 | $49.20 | Ascending Triangle Pattern Breakout |
| 5 | Alphabet Inc. | NASDAQ: GOOGL | $179.53 | $182.70 | Symmetrical Triangle Pattern |
| 6 | Dell Technologies Inc. | NYSE: DELL | $125.22 | $129.10 | Symmetrical Triangle Pattern |
| 7 | Advanced Micro Devices Inc. | NASDAQ: AMD | $137.91 | $146.20 | Symmetrical Triangle Pattern |
| 8 | Berkshire Hathaway Inc. | NYSE: BRK.B | $485.00 | $495.00 | Symmetrical Triangle Pattern |
| 9 | TripAdvisor Inc. | NASDAQ: TRIP | $17.50 | $17.90 | Symmetrical Triangle Pattern Breakout |
| 10 | Apple Inc. | NASDAQ: AAPL | $213.55 | $216.30 | 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 Joby Aviation Inc. (NYSE: JOBY)
Sector: Industrials • Airports & Air 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 JOBY is if the stock closes above the immediate resistance level of $10.80. This is marked in the chart below as a green color dotted line.
Daily chart – JOBY
JOBY – Symmetrical Triangle Pattern Breakout
#2 Verint Systems, Inc. (NASDAQ: VRNT)
Sector: Technology • Software – Infrastructure
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 VRNT is if the stock has a daily close above $21.70. This is marked in the chart below as a green color dotted line.
Daily chart – VRNT
VRNT – Downtrend Channel Breakout
#3 Walmart Inc. (NYSE: WMT)
Sector: Consumer Defensive • Discount Stores
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 WMT is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $100.30. This is marked in the chart below as a green color dotted line.
Daily chart – WMT
WMT – Symmetrical Triangle Pattern
#4 Bank Of America Corp (NYSE: BAC)
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 BAC is if the stock has a daily close above the near-term resistance level of $49.20. This is marked in the chart below as a green color dotted line.
Daily chart – BAC
BAC – Ascending Triangle Pattern Breakout
#5 Alphabet Inc. (NASDAQ: GOOGL)
Sector: Communication Services • Internet Content & Information
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 GOOGL is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $182.70. This is marked in the chart below as a green color dotted line.
Daily chart – GOOGL
GOOGL – Symmetrical Triangle Pattern
#6 Dell Technologies Inc. (NYSE: DELL)
Sector: Technology • Computer Hardware
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 DELL is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $129.10. This is marked in the chart below as a green color dotted line.
Daily chart – DELL
DELL – Symmetrical Triangle Pattern
#7 Advanced Micro Devices Inc. (NASDAQ: AMD)
Sector: Technology • Semiconductors
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 AMD is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $146.20. This is marked in the chart below as a green color dotted line.
Daily chart – AMD
AMD – Symmetrical Triangle Pattern
#8 Berkshire Hathaway Inc. (NYSE: BRK.B)
Sector: Financial • Insurance – Diversified
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 BRK.B is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $495.00. This is marked in the chart below as a green color dotted line.
Daily chart – BRK.B
BRK.B – Symmetrical Triangle Pattern
#9 TripAdvisor Inc. (NASDAQ: TRIP)
Sector: Consumer Cyclical • Travel 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 TRIP is if the stock closes above the immediate resistance level of $17.90. This is marked in the chart below as a green color dotted line.
Daily chart – TRIP
TRIP – Symmetrical Triangle Pattern Breakout
#10 Apple Inc. (NASDAQ: AAPL)
Sector: Technology • Consumer Electronics
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 AAPL is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $216.30. This is marked in the chart below as a green color dotted line.
Daily chart – AAPL
AAPL – Symmetrical Triangle Pattern
Happy Trading!
Trades of The Day Research Team
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