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, below is a list of our top 10 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 | MARA Holdings Inc. | NASDAQ: MARA | $9.32 | $10.10 | Falling Wedge Pattern Breakout |
| 2 | Venture Global Inc. | NYSE: VG | $13.10 | $13.40 | Symmetrical Triangle Pattern |
| 3 | UiPath Inc. | NYSE: PATH | $11.58 | $12.40 | Falling Wedge Pattern |
| 4 | Amplify Energy Corp | NYSE: AMPY | $6.54 | $6.70 | Symmetrical Triangle Pattern Breakout |
| 5 | Hims & Hers Health Inc. | NYSE: HIMS | $24.77 | $27.20 | Falling Wedge Pattern Breakout |
| 6 | Xunlei Ltd ADR | NASDAQ: XNET | $7.00 | $7.25 | Downtrend Channel Breakout |
| 7 | Terns Pharmaceuticals Inc. | NASDAQ: TERN | $46.52 | $47.40 | Symmetrical Triangle Pattern Breakout |
| 8 | Adma Biologics Inc. | NASDAQ: ADMA | $15.15 | $15.70 | Downtrend Channel |
| 9 | Navient Corp | NASDAQ: NAVI | $8.13 | $8.40 | Falling Wedge Pattern |
| 10 | SentinelOne Inc. | NYSE: S | $14.52 | $14.70 | Downtrend Channel 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 MARA Holdings Inc. (NASDAQ: MARA)
Sector: Financial • Capital Markets
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 MARA is above the nearest resistance level of $10.10. This is marked in the chart below as a green color dotted line.
Daily chart – MARA
MARA – Falling Wedge Pattern Breakout
#2 Venture Global Inc. (NYSE: VG)
Sector: Energy • Oil & Gas Midstream
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 VG is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $13.40. This is marked in the chart below as a green color dotted line.
Daily chart – VG
VG – Symmetrical Triangle Pattern
#3 UiPath Inc. (NYSE: PATH)
Sector: Technology • Software – Infrastructure
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 PATH is if the stock breaks out of the falling wedge pattern, at a price of around $12.40. This is marked in the chart below as a green color dotted line.
Daily chart – PATH
PATH – Falling Wedge Pattern
#4 Amplify Energy Corp (NYSE: AMPY)
Sector: Energy • Oil & Gas E&P
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 AMPY is if the stock closes above the immediate resistance level of $6.70. This is marked in the chart below as a green color dotted line.
Daily chart – AMPY
AMPY – Symmetrical Triangle Pattern Breakout
#5 Hims & Hers Health Inc. (NYSE: HIMS)
Sector: Healthcare • Drug Manufacturers – Specialty & Generic
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 HIMS is above the nearest resistance level of $27.20. This is marked in the chart below as a green color dotted line.
Daily chart – HIMS
HIMS – Falling Wedge Pattern Breakout
#6 Xunlei Ltd ADR (NASDAQ: XNET)
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 XNET is if the stock has a daily close above $7.25. This is marked in the chart below as a green color dotted line.
Daily chart – XNET
XNET – Downtrend Channel Breakout
#7 Terns Pharmaceuticals Inc. (NASDAQ: TERN)
Sector: Healthcare • Biotechnology
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 TERN is if the stock closes above the immediate resistance level of $47.40. This is marked in the chart below as a green color dotted line.
Daily chart – TERN
TERN – Symmetrical Triangle Pattern Breakout
#8 Adma Biologics Inc. (NASDAQ: ADMA)
Sector: Healthcare • Biotechnology
Reason: Formation of a Downtrend Channel
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 is currently forming a downtrend channel. The ideal buy level for ADMA is if the stock breaks out of the downtrend channel and has a daily close above $15.70. This is marked in the chart below as a green color dotted line.
Daily chart – ADMA
ADMA – Downtrend Channel
#9 Navient Corp (NASDAQ: NAVI)
Sector: Financial • Credit Services
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 NAVI is if the stock breaks out of the falling wedge pattern, at a price of around $8.40. This is marked in the chart below as a green color dotted line.
Daily chart – NAVI
NAVI – Falling Wedge Pattern
#10 SentinelOne Inc. (NYSE: S)
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 S is if the stock has a daily close above $14.70. This is marked in the chart below as a green color dotted line.
Daily chart – S
S – Downtrend Channel Breakout
Happy Trading!
Trades of The Day Research Team
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