Half of this week’s list is one shape: the triangle.
Five of the ten setups are triangles — three symmetrical (CareTrust, Disc Medicine, MiniMed) and two ascending (Ally Financial, First Horizon). That’s the market coiling. A triangle is what a chart draws when a stock stops trending and starts compressing — the range narrows, the swings shrink, and price squeezes toward a decision point.
Last week the list was about turns — beaten-down names trying to reverse. This week it’s about coils — stocks winding tighter until something gives.
The two ascending triangles are the ones to note. A flat ceiling with rising lows means buyers are stepping up a little higher each time they get the chance — pressure building against resistance. Both Ally and First Horizon are still inside their patterns, waiting for the ceiling to crack.
The rest fills in around the coil. Two energy majors — Shell and Equinor — are breaking out of downtrend channels at the same time. Lucid is out of a falling wedge, Canadian Pacific out of a rising wedge, and SELLAS is riding a flag.
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 | CareTrust REIT Inc. | NYSE: CTRE | $42.88 | $43.10 | Symmetrical Triangle Pattern Breakout |
| 2 | Lucid Group Inc. | NASDAQ: LCID | $7.36 | $7.70 | Falling Wedge Pattern Breakout |
| 3 | Ally Financial Inc. | NYSE: ALLY | $45.64 | $47.50 | Ascending Triangle Pattern |
| 4 | SELLAS Life Sciences Group Inc. | NASDAQ: SLS | $13.19 | $13.50 | Flag Pattern |
| 5 | Disc Medicine Inc. | NASDAQ: IRON | $76.15 | $79.60 | Symmetrical Triangle Pattern |
| 6 | Shell Plc ADR | NYSE: SHEL | $87.32 | $87.90 | Downtrend Channel Breakout |
| 7 | Canadian Pacific Kansas City Limited | NYSE: CP | $93.71 | $94.20 | Rising Wedge Pattern Breakout |
| 8 | Equinor ASA ADR | NYSE: EQNR | $37.37 | $37.80 | Downtrend Channel Breakout |
| 9 | First Horizon Corp | NYSE: FHN | $25.80 | $26.50 | Ascending Triangle Pattern |
| 10 | MiniMed Group Inc. | NASDAQ: MMED | $16.93 | $17.20 | Symmetrical Triangle Pattern Breakout |
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 CareTrust REIT Inc. (NYSE: CTRE)
Sector: Real Estate • REIT – Healthcare Facilities
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 CTRE is if the stock closes above the immediate resistance level of $43.10. This is marked in the chart below as a green color dotted line.
Daily chart – CTRE
CTRE – Symmetrical Triangle Pattern Breakout
#2 Lucid Group Inc. (NASDAQ: LCID)
Sector: Consumer Cyclical • Auto Manufacturers
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 LCID is above the nearest resistance level of $7.70. This is marked in the chart below as a green color dotted line.
Daily chart – LCID
LCID – Falling Wedge Pattern Breakout
#3 Ally Financial Inc. (NYSE: ALLY)
Sector: Financial • Credit Services
Reason: Formation of an Ascending Triangle Pattern
An ascending triangle pattern is a bullish pattern formed by drawing a horizontal line along the swing highs, and a rising trendline along the swing lows. These two lines result in the formation of a triangle. A breakout from this pattern is typically a strong bullish indication.
Buy Level(s): The ideal buy level for ALLY is if the stock breaks out of the ascending triangle pattern and has a daily close above the near-term resistance level of $47.50. This is marked in the chart below as a green color dotted line.
Daily chart – ALLY
ALLY – Ascending Triangle Pattern
#4 SELLAS Life Sciences Group Inc. (NASDAQ: SLS)
Sector: Healthcare • Biotechnology
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 SLS is if the stock breaks out of the flag pattern, at around $13.50. This is marked in the chart below as a green color dotted line.
Daily chart – SLS
SLS – Flag Pattern
#5 Disc Medicine Inc. (NASDAQ: IRON)
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 IRON is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $79.60. This is marked in the chart below as a green color dotted line.
Daily chart – IRON
IRON – Symmetrical Triangle Pattern
#6 Shell Plc ADR (NYSE: SHEL)
Sector: Energy • Oil & Gas Integrated
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 SHEL is if the stock has a daily close above $87.90. This is marked in the chart below as a green color dotted line.
Daily chart – SHEL
SHEL – Downtrend Channel Breakout
#7 Canadian Pacific Kansas City Limited (NYSE: CP)
Sector: Industrials • Railroads
Reason: Rising Wedge Pattern Breakout
A rising wedge pattern is formed by joining two upward-sloping, converging trendlines having a contracting range. The pattern appears to be wide at the bottom and continues to contract as prices rise. A breakout from a rising wedge pattern is often associated with high momentum and can signal an extended move. However, buying on this breakout is considered a more speculative trade due to the potential for a reversal.
Buy Level(s): The stock has currently broken out of a rising wedge pattern. However, the ideal buy level for CP is above the nearest resistance level of $94.20. This is marked in the chart below as a green color dotted line.
Daily chart – CP
CP – Rising Wedge Pattern Breakout
#8 Equinor ASA ADR (NYSE: EQNR)
Sector: Energy • Oil & Gas Integrated
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 EQNR is if the stock has a daily close above $37.80. This is marked in the chart below as a green color dotted line.
Daily chart – EQNR
EQNR – Downtrend Channel Breakout
#9 First Horizon Corp (NYSE: FHN)
Sector: Financial • Banks – Regional
Reason: Formation of an Ascending Triangle Pattern
An ascending triangle pattern is a bullish pattern formed by drawing a horizontal line along the swing highs, and a rising trendline along the swing lows. These two lines result in the formation of a triangle. A breakout from this pattern is typically a strong bullish indication.
Buy Level(s): The ideal buy level for FHN is if the stock breaks out of the ascending triangle pattern and has a daily close above the near-term resistance level of $26.50. This is marked in the chart below as a green color dotted line.
Daily chart – FHN
FHN – Ascending Triangle Pattern
#10 MiniMed Group Inc. (NASDAQ: MMED)
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 MMED is if the stock closes above the immediate resistance level of $17.20. This is marked in the chart below as a green color dotted line.
Daily chart – MMED
MMED – Symmetrical Triangle Pattern Breakout
Ten names, one dominant shape. Five of the ten are triangles — three symmetrical (CareTrust, Disc Medicine, MiniMed) and two ascending (Ally Financial, First Horizon) — stocks that have stopped trending and started compressing toward a breakout. Around them: two energy majors turning out of downtrend channels (Shell, Equinor), a falling wedge (Lucid), a rising wedge (Canadian Pacific), and a flag (SELLAS).
A coiled chart cuts both ways. The tighter the compression, the sharper the move when it releases — in whichever direction it picks. That’s why the trigger matters: a clean daily close above the buy level listed alongside each ticker. Not the intraday tap. Not the open. The close. The compression tells you a move is coming; the close tells you which way to trust it.
We’ll watch the table this week and let the names sort themselves out.
Happy Trading!
Tara and Greg
