The Top 10 Stocks to Watch This Week for Possible Breakouts

Half of this week’s list mines bitcoin. Most of the rest makes chips.

Four of the ten names are bitcoin miners — CleanSpark, TeraWulf, MARA, and Bitdeer — and a fifth, Bakkt, is a digital-asset platform. That’s five of ten in crypto infrastructure. Four more are chip and photonics names: Intel, Coherent, AXT, and Rambus. The tenth, Forgent Power Solutions, is electrical equipment — the power side of the same trade.

Put it together and this isn’t a grab-bag. It’s a digital-infrastructure watchlist — the picks-and-shovels of crypto and compute — and it’s high-beta by construction. When these names move, they move.

That’s the character to trade around. Nine of the ten have already broken out of their primary pattern; only Coherent is still inside its triangle, waiting for the trigger. So the setups are mostly live — which in a list this volatile makes the discipline matter more, not less.

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 CleanSpark, Inc. (Nasdaq: CLSK)

Sector: Financials • Capital Markets

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 CLSK is if the stock closes above the immediate resistance level of $14.65. This is marked in the chart below as a green color dotted line.

Daily chart – CLSK

#2 TeraWulf Inc. (Nasdaq: WULF)

Sector: Financials • Capital Markets

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 WULF is above the nearest resistance level of $17.30. This is marked in the chart below as a green color dotted line.

Daily chart – WULF

#3 Intel Corporation (Nasdaq: INTC)

Sector: Technology • Semiconductors

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 INTC is if the stock closes above the immediate resistance level of $112.10. This is marked in the chart below as a green color dotted line.

Daily chart – INTC

#4 Forgent Power Solutions, Inc. (NYSE: FPS)

Sector: Industrials • Electrical Equipment & Parts

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 FPS is above the nearest resistance level of $40.20. This is marked in the chart below as a green color dotted line.

Daily chart – FPS

#5 Coherent Corp. (NYSE: COHR)

Sector: Technology • Scientific & Technical Instruments

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 COHR is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $330.50. This is marked in the chart below as a green color dotted line.

Daily chart – COHR

#6 MARA Holdings, Inc. (Nasdaq: MARA)

Sector: Financials • Capital Markets

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 MARA is if the stock has a daily close above $13.40. This is marked in the chart below as a green color dotted line.

Daily chart – MARA

#7 Bakkt, Inc. (NYSE: BKKT)

Sector: Technology • Software – Infrastructure

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 BKKT is above the nearest resistance level of $8.90. This is marked in the chart below as a green color dotted line.

Daily chart – BKKT

#8 AXT, Inc. (Nasdaq: AXTI)

Sector: Technology • Semiconductor Equipment & Materials

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 AXTI is if the stock closes above the immediate resistance level of $72.70. This is marked in the chart below as a green color dotted line.

Daily chart – AXTI

#9 Rambus Inc. (Nasdaq: RMBS)

Sector: Technology • Semiconductors

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 RMBS is above the nearest resistance level of $89.10. This is marked in the chart below as a green color dotted line.

Daily chart – RMBS

#10 Bitdeer Technologies Group (Nasdaq: BTDR)

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 BTDR is if the stock closes above the immediate resistance level of $13.10. This is marked in the chart below as a green color dotted line.

Daily chart – BTDR

Ten names, one character: high-beta digital infrastructure. Five in crypto — CleanSpark, TeraWulf, MARA, Bitdeer, and Bakkt. Four in chips and photonics — Intel, Coherent, AXT, and Rambus. And one on the power side, Forgent Power Solutions. It’s a risk-on list, and it trades like one.

That’s exactly why the rule doesn’t bend. Nine of these have already cleared their pattern; the buy levels in the table are the confirmation, not the invitation to chase. What we want is a clean daily close above the listed level. Not the intraday spike. Not the gap open. The close. In names that can run 5% before lunch and give it back by the bell, the daily close is the only signal worth acting on.

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

Happy Trading!
Tara and Greg