The Top 10 Stocks to Watch This Week for Possible Breakouts

Seven of the ten names on this week’s list live somewhere on the semiconductor supply chain — and not bunched up in one corner of it.

We’ve got the foundry (GLOBALFOUNDRIES), the power and analog layer (onsemi), the fabless designers (Qualcomm and Broadcom), the memory maker (Micron), the company whose test equipment the whole industry validates its chips on (Keysight), and the company that bolts those chips into finished AI servers (Super Micro). Fab to system, top to bottom.

Chips have been a recurring presence on these lists lately. What’s different this week isn’t that they showed up — it’s how much of the chain showed up at once. This isn’t a bet on one node. It’s the whole stack flashing the same kind of setup at the same time.

The three names that aren’t chips — Delta, Costco, and Satellogic — round out the list without changing its center of gravity.

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 Delta Air Lines, Inc. (NYSE: DAL)

Sector: Industrials • Airlines

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 DAL is if the stock closes above the immediate resistance level of $85.50. This is marked in the chart below as a green color dotted line.

Daily chart – DAL

#2 GLOBALFOUNDRIES Inc. (Nasdaq: GFS)

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 GFS is above the nearest resistance level of $50.10. This is marked in the chart below as a green color dotted line.

Daily chart – GFS

#3 QUALCOMM Incorporated (Nasdaq: QCOM)

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 QCOM is if the stock closes above the immediate resistance level of $205.00. This is marked in the chart below as a green color dotted line.

Daily chart – QCOM

#4 onsemi (Nasdaq: ON)

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 ON is above the nearest resistance level of $78.40. This is marked in the chart below as a green color dotted line.

Daily chart – ON

#5 Micron Technology, Inc. (Nasdaq: MU)

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 MU is if the stock closes above the immediate resistance level of $1,111.00. This is marked in the chart below as a green color dotted line.

Daily chart – MU

#6 Keysight Technologies, Inc. (NYSE: KEYS)

Sector: Technology • Scientific & Technical Instruments

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 KEYS is above the near-term resistance level of $369.60. This is marked in the chart below as a green color dotted line.

Daily chart – KEYS

#7 Costco Wholesale Corporation (Nasdaq: COST)

Sector: Consumer Staples • Discount Stores

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 COST is if the stock breaks out of the falling wedge pattern, at a price of around $928.20. This is marked in the chart below as a green color dotted line.

Daily chart – COST

#8 Satellogic Inc. (Nasdaq: SATL)

Sector: Industrials • Aerospace & Defense

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 SATL is if the stock closes above the immediate resistance level of $6.50. This is marked in the chart below as a green color dotted line.

Daily chart – SATL

#9 Broadcom Inc. (Nasdaq: AVGO)

Sector: Technology • Semiconductors

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 AVGO is if the stock breaks out of the falling wedge pattern, at a price of around $365.40. This is marked in the chart below as a green color dotted line.

Daily chart – AVGO

#10 Super Micro Computer, Inc. (Nasdaq: SMCI)

Sector: Technology • Computer Hardware

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 SMCI is if the stock closes above the immediate resistance level of $44.40. This is marked in the chart below as a green color dotted line.

Daily chart – SMCI

Ten names, and seven of them are the semiconductor supply chain in miniature. Foundry and power at the base (GLOBALFOUNDRIES, onsemi), design in the middle (Qualcomm, Broadcom), memory alongside it (Micron), the test bench that keeps it all honest (Keysight), and the finished box at the end (Super Micro). Delta, Costco, and Satellogic are the three names sitting outside the chain.

Eight of the ten have already broken out of their primary pattern; only Costco and Broadcom are still inside theirs, waiting for the trigger to fire. Either way, the signal we’re acting on is the same: 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