The Top 10 Stocks to Watch This Week for Possible Breakouts

This week’s list is essentially an enterprise software watchlist.

Eight of the 10 names are software stocks. The split inside that eight is so clean it’s almost suspicious: four application software names (Snowflake, Monday.com, Salesforce, PagerDuty) and four infrastructure software names (Gorilla Technology, Rapid7, Oracle, Okta). Four and four.

The other two — Hyperliquid Strategies and Rivian — are the outliers.

When a screen built on chart patterns alone, with no sector filter and no theme overlay, comes back with 80% in one sector, the tape is telling you where the breakouts are. It’s not a coincidence and it doesn’t need a reason from us.

The practical read is the same one as last week, just more pointed: if you take three or four names off this list, you’re not running a diversified watchlist book — you’re running a software bet. Size accordingly.

Eight of the 10 have already broken out. Two — Rivian and Salesforce — 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.

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 Snowflake Inc. (NYSE: SNOW)

Sector: Technology • Software – Application

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 SNOW is above the nearest resistance level of $260.00. This is marked in the chart below as a green color dotted line.

Daily chart – SNOW

#2 Monday.Com Ltd (NASDAQ: MNDY)

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 MNDY is if the stock closes above the immediate resistance level of $91.70. This is marked in the chart below as a green color dotted line.

Daily chart – MNDY

#3 Hyperliquid Strategies Inc. (NASDAQ: PURR)

Sector: Financial • Capital Markets

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 PURR is if the stock has a daily close above the near-term resistance level of $10.30. This is marked in the chart below as a green color dotted line.

Daily chart – PURR

#4 Rivian Automotive Inc. (NASDAQ: RIVN)

Sector: Consumer Cyclical • Auto Manufacturers

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 RIVN is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $16.80. This is marked in the chart below as a green color dotted line.

Daily chart – RIVN

#5 Salesforce Inc. (NYSE: CRM)

Sector: Technology • Software – Application

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 CRM is if the stock breaks out of the falling wedge pattern, at a price of around $196.00. This is marked in the chart below as a green color dotted line.

Daily chart – CRM

#6 Pagerduty Inc. (NYSE: PD)

Sector: Technology • Software – Application

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 PD is above the near-term resistance area, which translates to a price of around $10.40. This is marked in the chart below as a green color dotted line.

Daily chart – PD

#7 Gorilla Technology Group Inc. (NASDAQ: GRRR)

Sector: Technology • Software – Infrastructure

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 GRRR is if the stock closes above the immediate resistance level of $21.00. This is marked in the chart below as a green color dotted line.

Daily chart – GRRR

#8 Rapid7 Inc. (NASDAQ: RPD)

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 RPD is if the stock has a daily close above $8.90. This is marked in the chart below as a green color dotted line.

Daily chart – RPD

#9 Oracle Corp (NYSE: ORCL)

Sector: Technology • Software – Infrastructure

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 ORCL is if the stock closes above the immediate resistance level of $228.00. This is marked in the chart below as a green color dotted line.

Daily chart – ORCL

#10 Okta Inc. (NASDAQ: OKTA)

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 OKTA is if the stock has a daily close above $126.00. This is marked in the chart below as a green color dotted line.

Daily chart – OKTA

Ten names, eight in software. Four application, four infrastructure. Hyperliquid Strategies and Rivian round out the table, but they’re the exceptions — the spine of this week’s list is enterprise software, broken out or close to it.

The discipline is the daily close. Not the intraday tag of the buy level. Not the open. The close above the level listed alongside each ticker.

We’ll watch the table this week and let the names sort themselves out.

Happy Trading!
Tara and Greg