The Top 10 Stocks to Watch This Week for Possible Breakouts

Eight of the 10 names on this week’s list have already broken out of their primary chart pattern. Only two haven’t.

That makes this a confirmation-heavy week. The breakouts are mostly through the door — ODDITY, Venture Global, Celestica, ACV Auctions, Alphatec, Insmed, Nokia, and Apple have all cleared their patterns. On those eight, the question isn’t whether they break out. It’s whether buyers defend the move with a clean daily close above the resistance level listed alongside each ticker.

Only YPF and DraftKings are still inside their triangles, waiting for the trigger to fire. Two anticipation setups in a table of eight confirmations.

So the trade leans one direction this week: don’t chase the initial breakout candle, wait for the daily close that says buyers are holding the level. That’s the discipline on eight of these ten.

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 ODDITY Tech Ltd. (Nasdaq: ODD)

Sector: Consumer Staples • Household & Personal Products

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 ODD is above the nearest resistance level of $20.50. This is marked in the chart below as a green color dotted line.

Daily chart – ODD

#2 Venture Global, Inc. (NYSE: VG)

Sector: Energy • Oil & Gas Midstream

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 VG is if the stock closes above the immediate resistance level of $16.20. This is marked in the chart below as a green color dotted line.

Daily chart – VG

#3 Celestica Inc. (NYSE: CLS)

Sector: Technology • Electronic Components

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 CLS is above the nearest resistance level of $353.00. This is marked in the chart below as a green color dotted line.

Daily chart – CLS

#4 ACV Auctions Inc. (NYSE: ACVA)

Sector: Consumer Discretionary • Auto & Truck Dealerships

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 ACVA is if the stock closes above the immediate resistance level of $11.00. This is marked in the chart below as a green color dotted line.

Daily chart – ACVA

#5 Alphatec Holdings, Inc. (Nasdaq: ATEC)

Sector: Healthcare • Medical Devices

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 ATEC is if the stock closes above the immediate resistance level of $10.80. This is marked in the chart below as a green color dotted line.

Daily chart – ATEC

#6 Insmed Incorporated (Nasdaq: INSM)

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 INSM is if the stock has a daily close above $135.50. This is marked in the chart below as a green color dotted line.

Daily chart – INSM

#7 Nokia Corporation (NYSE: NOK)

Sector: Technology • Communication Equipment

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 NOK is if the stock closes above the immediate resistance level of $11.50. This is marked in the chart below as a green color dotted line.

Daily chart – NOK

#8 YPF Sociedad Anónima (NYSE: YPF)

Sector: Energy • Oil & Gas Integrated

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 YPF is if the stock breaks out of the ascending triangle pattern and has a daily close above the near-term resistance level of $57.20. This is marked in the chart below as a green color dotted line.

Daily chart – YPF

#9 DraftKings Inc. (Nasdaq: DKNG)

Sector: Consumer Discretionary • Gambling

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 DKNG is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $26.00. This is marked in the chart below as a green color dotted line.

Daily chart – DKNG

#10 Apple Inc. (Nasdaq: AAPL)

Sector: Technology • Consumer Electronics

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 AAPL is if the stock closes above the immediate resistance level of $338.00. This is marked in the chart below as a green color dotted line.

Daily chart – AAPL

Ten names, two timing scenarios — and the split is lopsided. Eight confirmation setups where the breakout has already fired: ODDITY, Venture Global, Celestica, ACV Auctions, Alphatec, Insmed, Nokia, and Apple. And two anticipation setups still inside their triangles — YPF and DraftKings — where the pattern is built but the trigger hasn’t fired yet.

The signal is the same on both sides: a clean daily close above the buy level listed alongside each ticker. Not the open. Not the intraday tap. The close. On the eight that have already broken out, that close tells you buyers are defending the move. On the two that haven’t, it’s the trigger itself.

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

Happy Trading!
Tara and Greg