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 | Bitdeer Technologies Group | NASDAQ: BTDR | $14.29 | $15.20 | Symmetrical Triangle Pattern Breakout |
| 2 | SentinelOne Inc. | NYSE: S | $18.86 | $19.50 | Falling Wedge Pattern Breakout |
| 3 | Keycorp | NYSE: KEY | $19.36 | $19.50 | Symmetrical Triangle Pattern Breakout |
| 4 | NexGen Energy Ltd | NYSE: NXE | $7.88 | $8.00 | Ascending Triangle Pattern Breakout |
| 5 | HP Inc. | NYSE: HPQ | $28.54 | $29.00 | Symmetrical Triangle Pattern Breakout |
| 6 | Neogenomics Inc. | NASDAQ: NEO | $8.78 | $9.20 | Falling Wedge Pattern Breakout |
| 7 | Kraft Heinz Co. | NASDAQ: KHC | $27.97 | $28.20 | Symmetrical Triangle Pattern |
| 8 | JD.com Inc. ADR | NASDAQ: JD | $31.07 | $32.60 | Falling Wedge Pattern |
| 9 | Baidu Inc. ADR | NASDAQ: BIDU | $95.30 | $95.50 | Symmetrical Triangle Pattern Breakout |
| 10 | Western Union Company | NYSE: WU | $8.67 | $8.90 | Falling Wedge Pattern Breakout |
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 Bitdeer Technologies Group (NASDAQ: BTDR)
Sector: Technology • Software – Application
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 BTDR is if the stock closes above the immediate resistance level of $15.20. This is marked in the chart below as a green color dotted line.
Daily chart – BTDR
BTDR – Symmetrical Triangle Pattern Breakout
#2 SentinelOne Inc. (NYSE: S)
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 S is above the nearest resistance level of $19.50. This is marked in the chart below as a green color dotted line.
Daily chart – S
S – Falling Wedge Pattern Breakout
#3 Keycorp (NYSE: KEY)
Sector: Financial • Banks – Regional
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 KEY is if the stock closes above the immediate resistance level of $19.50. This is marked in the chart below as a green color dotted line.
Daily chart – KEY
KEY – Symmetrical Triangle Pattern Breakout
#4 NexGen Energy Ltd (NYSE: NXE)
Sector: Energy • Uranium
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 NXE is if the stock has a daily close above the near-term resistance level of $8.00. This is marked in the chart below as a green color dotted line.
Daily chart – NXE
NXE – Ascending Triangle Pattern Breakout
#5 HP Inc. (NYSE: HPQ)
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 HPQ is if the stock closes above the immediate resistance level of $29.00. This is marked in the chart below as a green color dotted line.
Daily chart – HPQ
HPQ – Symmetrical Triangle Pattern Breakout
#6 Neogenomics Inc. (NASDAQ: NEO)
Sector: Healthcare • Diagnostics & Research
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 NEO is above the nearest resistance level of $9.20. This is marked in the chart below as a green color dotted line.
Daily chart – NEO
NEO – Falling Wedge Pattern Breakout
#7 Kraft Heinz Co. (NASDAQ: KHC)
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 KHC is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $28.20. This is marked in the chart below as a green color dotted line.
Daily chart – KHC
KHC – Symmetrical Triangle Pattern
#8 JD.com Inc. ADR (NASDAQ: JD)
Sector: Consumer Cyclical • Internet Retail
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 JD is if the stock breaks out of the falling wedge pattern, at a price of around $32.60. This is marked in the chart below as a green color dotted line.
Daily chart – JD
JD – Falling Wedge Pattern
#9 Baidu Inc. ADR (NASDAQ: BIDU)
Sector: Communication Services • Internet Content & Information
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 BIDU is if the stock closes above the immediate resistance level of $95.50. This is marked in the chart below as a green color dotted line.
Daily chart – BIDU
BIDU – Symmetrical Triangle Pattern Breakout
#10 Western Union Company (NYSE: WU)
Sector: Financial • Credit Services
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 WU is above the nearest resistance level of $8.90. This is marked in the chart below as a green color dotted line.
Daily chart – WU
WU – Falling Wedge Pattern Breakout
Happy Trading!
Trades of The Day Research Team
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