The Top 10 Stocks to Watch This Week for Possible Breakouts

Four of the 10 names on this week’s table are coiled inside the same shape: a symmetrical triangle. Compass, ImmunityBio, IBM, and BridgeBio are all sitting in that tightening range where buyers and sellers haven’t settled the argument yet.

That’s the pattern that shows up when the market is undecided. Price compresses, the range narrows, and the move waits for a catalyst to pick a direction. When it resolves to the upside, it tends to resolve with conviction.

The rest of the table rounds out with two downtrend-channel breakouts, a falling wedge, a flag, an uptrend channel, and a consolidation break. A spread of setups — but the triangle is the one doing the most work this week.

Underneath that, the timing splits cleanly: six names have already broken out of their patterns, while four are still inside them, waiting for the trigger to fire. So there’s a mix of confirmation and anticipation on the menu.

Pick the ones that fit the way you trade.

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 Compass Inc. (NYSE: COMP)

Sector: Real Estate • Real Estate Services

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 COMP is if the stock closes above the immediate resistance level of $11.70. This is marked in the chart below as a green color dotted line.

Daily chart – COMP

#2 Global E Online Ltd. (NASDAQ: GLBE)

Sector: Consumer Cyclical • Internet Retail

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 GLBE is if the stock has a daily close above $36.70. This is marked in the chart below as a green color dotted line.

Daily chart – GLBE

#3 Live Nation Entertainment Inc. (NYSE: LYV)

Sector: Communication Services • Entertainment

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 LYV is if the stock breaks out of the uptrend channel and has a daily close above $182.00. This is marked in the chart below as a green color dotted line.

Daily chart – LYV

#4 ImmunityBio Inc. (NASDAQ: IBRX)

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 IBRX is if the stock closes above the immediate resistance level of $8.90. This is marked in the chart below as a green color dotted line.

Daily chart – IBRX

#5 Vera Therapeutics Inc. (NASDAQ: VERA)

Sector: Healthcare • Biotechnology

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 VERA is if the stock has a daily close above $43.50. This is marked in the chart below as a green color dotted line.

Daily chart – VERA

#6 Merck & Co Inc. (NYSE: MRK)

Sector: Healthcare • Drug Manufacturers – General

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 MRK is above the near-term resistance area, which translates to a price of around $129.50. This is marked in the chart below as a green color dotted line.

Daily chart – MRK

#7 Uber Technologies Inc. (NYSE: UBER)

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 UBER is if the stock breaks out of the falling wedge pattern, at a price of around $77.90. This is marked in the chart below as a green color dotted line.

Daily chart – UBER

#8 International Business Machines Corp. (NYSE: IBM)

Sector: Technology • Information Technology Services

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 IBM is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $274.40. This is marked in the chart below as a green color dotted line.

Daily chart – IBM

#9 Tenable Holdings Inc. (NASDAQ: TENB)

Sector: Technology • Software – Infrastructure

Reason: Breakout From 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): Although the stock has currently broken out of the flag pattern, the ideal buy level for TENB is above the near-term resistance level of $30.50. This is marked in the chart below as a green color dotted line.

Daily chart – TENB

#10 BridgeBio Pharma Inc. (NASDAQ: BBIO)

Sector: Healthcare • Biotechnology

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 BBIO is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $74.60. This is marked in the chart below as a green color dotted line.

Daily chart – BBIO

Ten names, and the shape that dominates is the symmetrical triangle — four of them, Compass, ImmunityBio, IBM, and BridgeBio, all compressing toward a decision. The other six spread across channel breakouts, a wedge, a flag, and a consolidation break.

The timing splits down the middle of that. Six names have already cleared their patterns and are sitting at the secondary trigger above resistance. Four are still inside, waiting for the trigger to fire.

The signal that matters is the same for every one of them: 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