The Top 10 Stocks to Watch This Week for Possible Breakouts

The screen turned defensive this week.

After last week’s list came back nearly all enterprise software, this week’s breakouts are clustered somewhere else entirely. Four healthcare names — Biolife Solutions, Hinge Health, Medtronic, Tempus AI. Three consumer names — McDonald’s, US Foods, TJX. Add RTX (aerospace), REalloys (industrial metals), and ServiceTitan (the lone software name) and you have the full table.

We don’t run macro models, we run charts. The screen is mechanical — pattern criteria, no sector filter. When the output rotates this hard from one week to the next, the tape is telling you where the breakouts are coming from.

Seven of the 10 names are still inside their patterns. Three — Biolife Solutions, Medtronic, and ServiceTitan — have already broken out. The trade this week is mostly anticipation: waiting for a daily close above the buy level listed alongside each ticker.

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 Biolife Solutions Inc. (NASDAQ: BLFS)

Sector: Healthcare • Medical Instruments & Supplies

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 BLFS is if the stock closes above the immediate resistance level of $27.70. This is marked in the chart below as a green color dotted line.

Daily chart – BLFS

#2 Hinge Health Inc. (NYSE: HNGE)

Sector: Healthcare • Health Information Services

Reason: Formation of 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 ideal buy level for HNGE is if the stock breaks out of the uptrend channel and has a daily close above $64.00. This is marked in the chart below as a green color dotted line.

Daily chart – HNGE

#3 McDonald’s Corp. (NYSE: MCD)

Sector: Consumer Cyclical • Restaurants

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 MCD is if the stock breaks out of the falling wedge pattern, at a price of around $281.00. This is marked in the chart below as a green color dotted line.

Daily chart – MCD

#4 US Foods Holding Corp. (NYSE: USFD)

Sector: Consumer Defensive • Food Distribution

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 USFD is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $85.80. This is marked in the chart below as a green color dotted line.

Daily chart – USFD

#5 Medtronic Plc. (NYSE: MDT)

Sector: Healthcare • Medical Devices

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 MDT is above the nearest resistance level of $82.60. This is marked in the chart below as a green color dotted line.

Daily chart – MDT

#6 TJX Companies Inc. (NYSE: TJX)

Sector: Consumer Cyclical • Apparel Retail

Reason: Formation of 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): The ideal buy level for TJX is above the breakout level of the consolidation area, at around $163.00. This is marked in the chart below as a green color dotted line.

Daily chart – TJX

#7 RTX Corp. (NYSE: RTX)

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 RTX is if the stock breaks out of the falling wedge pattern, at a price of around $182.30. This is marked in the chart below as a green color dotted line.

Daily chart – RTX

#8 REalloys Inc. (NASDAQ: ALOY)

Sector: Basic Materials • Other Industrial Metals & Mining

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 ALOY is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $14.00. This is marked in the chart below as a green color dotted line.

Daily chart – ALOY

#9 Tempus AI Inc. (NASDAQ: TEM)

Sector: Healthcare • Health Information Services

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 TEM is if the stock breaks out of the downtrend channel and has a daily close above $54.60. This is marked in the chart below as a green color dotted line.

Daily chart – TEM

#10 ServiceTitan Inc. (NASDAQ: TTAN)

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 TTAN is above the nearest resistance level of $84.80. This is marked in the chart below as a green color dotted line.

Daily chart – TTAN

Ten names, three groupings. Four healthcare. Three consumer. Three others — aerospace (RTX), industrial metals (REalloys), software (ServiceTitan). The first two buckets are where most of this week’s breakouts are clustering, and they share a defensive character that last week’s screen didn’t have.

The discipline this week is the same as every week. A clean daily close above the buy level listed alongside each ticker. Not the intraday tap. Not the open. The close.

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

Happy Trading!
Tara and Greg