Two sectors are doing most of the work on this week’s list.
Five of the 10 names cluster into two buckets: three aerospace and defense plays (Starfighters, Redwire, Archer) and two RF semiconductor names (Skyworks, Qorvo). That’s half the table sitting in two sector tapes.
The semi pair is especially tight. Both Skyworks and Qorvo are RF/wireless chip names, both broke out of symmetrical triangles, and both have triggers within roughly $1.50 of current price. Two stocks, effectively the same trade.
The aerospace trio is broader — Starfighters is space launch, Redwire is space infrastructure, Archer is eVTOL aviation — but they share the same sector tape and tend to move on the same headlines.
The other five names — Johnson & Johnson, Spotify, Cerence, D-Wave, NetApp — are scattered across healthcare, comms, software, and quantum, doing their own thing.
The practical read: if you trade more than one or two names off this list, check your sector exposure before sizing. Seven of the 10 have already broken out. Three — Johnson & Johnson, Spotify, and Archer — are still inside their patterns waiting for the trigger to fire.
Here are the 10 stocks we’re watching this week, in no particular order.
| Sl # | Name of the Stock | Stock Ticker | Last Close | Buy Level(s) | Reason |
|---|---|---|---|---|---|
| 1 | Johnson & Johnson | NYSE: JNJ | $234.34 | $235.30 | Flag Pattern |
| 2 | Spotify Technology SA | NYSE: SPOT | $519.86 | $543.00 | Downtrend Channel |
| 3 | Skyworks Solutions Inc. | NASDAQ: SWKS | $82.42 | $83.80 | Symmetrical Triangle Pattern Breakout |
| 4 | Starfighters Space Inc. | AMEX: FJET | $7.20 | $7.50 | Falling Wedge Pattern Breakout |
| 5 | Redwire Corp | NYSE: RDW | $17.49 | $18.00 | Uptrend Channel Breakout |
| 6 | Cerence Inc. | NASDAQ: CRNC | $10.98 | $11.30 | Symmetrical Triangle Pattern Breakout |
| 7 | D-Wave Quantum Inc. | NYSE: QBTS | $29.40 | $31.20 | Falling Wedge Pattern Breakout |
| 8 | Netapp Inc. | NASDAQ: NTAP | $139.36 | $142.20 | Breakout From Consolidation Area |
| 9 | Qorvo Inc. | NASDAQ: QRVO | $106.43 | $107.40 | Symmetrical Triangle Pattern Breakout |
| 10 | Archer Aviation Inc. | NYSE: ACHR | $6.36 | $6.80 | Falling Wedge Pattern |
If needed, swipe or scroll sideways to view the full table.
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 Johnson & Johnson (NYSE: JNJ)
Sector: Healthcare • Drug Manufacturers – General
Reason: Formation of a Flag Pattern
A flag pattern is a short-term continuation pattern that marks a small consolidation before the previous move resumes. The pattern is formed when the market consolidates in a narrow range after a sharp move. For a stock in an uptrend, a breakout from this pattern is typically a strong bullish indication.
Buy Level(s): The ideal buy level for JNJ is if the stock breaks out of the flag pattern, at around $235.30. This is marked in the chart below as a green color dotted line.
Daily chart – JNJ
JNJ – Flag Pattern
#2 Spotify Technology SA (NYSE: SPOT)
Sector: Communication Services • Internet Content & Information
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 SPOT is if the stock breaks out of the downtrend channel and has a daily close above $543.00. This is marked in the chart below as a green color dotted line.
Daily chart – SPOT
SPOT – Downtrend Channel
#3 Skyworks Solutions Inc. (NASDAQ: SWKS)
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 SWKS is if the stock closes above the immediate resistance level of $83.80. This is marked in the chart below as a green color dotted line.
Daily chart – SWKS
SWKS – Symmetrical Triangle Pattern Breakout
#4 Starfighters Space Inc. (AMEX: FJET)
Sector: Industrials • Aerospace & Defense
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 FJET is above the nearest resistance level of $7.50. This is marked in the chart below as a green color dotted line.
Daily chart – FJET
FJET – Falling Wedge Pattern Breakout
#5 Redwire Corp (NYSE: RDW)
Sector: Industrials • Aerospace & Defense
Reason: Breakout From an Uptrend Channel
An uptrend channel or an ascending channel is the price action contained between upward sloping parallel lines. It is formed by a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs. A stock usually trades between the two rails of the uptrend channel before finally breaking out from the upper rail.
Buy Level(s): The stock has currently broken out of the uptrend channel. However, the ideal buy level for RDW is if the stock has a daily close above the near-term resistance level of $18.00. This is marked in the chart below as a green color dotted line.
Daily chart – RDW
RDW – Uptrend Channel Breakout
#6 Cerence Inc. (NASDAQ: CRNC)
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 CRNC is if the stock closes above the immediate resistance level of $11.30. This is marked in the chart below as a green color dotted line.
Daily chart – CRNC
CRNC – Symmetrical Triangle Pattern Breakout
#7 D-Wave Quantum Inc. (NYSE: QBTS)
Sector: Technology • Computer Hardware
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 QBTS is above the nearest resistance level of $31.20. This is marked in the chart below as a green color dotted line.
Daily chart – QBTS
QBTS – Falling Wedge Pattern Breakout
#8 Netapp Inc. (NASDAQ: NTAP)
Sector: Technology • Software – Infrastructure
Reason: Breakout From a Consolidation Area in the Daily Chart
A Consolidation Area is a price action contained between two parallel lines. It is formed by a lower line that connects the lows, and an upper line that joins the highs. A stock usually trades between the two lines of the consolidation area before finally breaking out from the upper rail.
Buy Level(s): Although the stock has currently broken out of a consolidation area, the ideal buy level for NTAP is above the near-term resistance area, which translates to a price of around $142.20. This is marked in the chart below as a green color dotted line.
Daily chart – NTAP
NTAP – Breakout From Consolidation Area
#9 Qorvo Inc. (NASDAQ: QRVO)
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 QRVO is if the stock closes above the immediate resistance level of $107.40. This is marked in the chart below as a green color dotted line.
Daily chart – QRVO
QRVO – Symmetrical Triangle Pattern Breakout
#10 Archer Aviation Inc. (NYSE: ACHR)
Sector: Industrials • Aerospace & Defense
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 ACHR is if the stock breaks out of the falling wedge pattern, at a price of around $6.80. This is marked in the chart below as a green color dotted line.
Daily chart – ACHR
ACHR – Falling Wedge Pattern
Ten names, but half the list sits in just two sectors. The aerospace trio — Starfighters, Redwire, and Archer — will move on the same kind of news. The Skyworks/Qorvo pair will move on the same kind of chip-cycle data point. Trading two or three names from the same cluster isn’t diversification, it’s leverage.
The signal that matters is the same one as every week: a clean daily close above the buy level listed alongside each ticker. Not the intraday tag. Not the open. The close.
We’ll watch the table this week and let the names sort themselves out.
Happy Trading!
Tara and Greg