Strip out three names and this week’s list is really one bet: semiconductors.
Seven of the 10 names are technology, and every one of those seven sits somewhere in the chip supply chain. The chip makers — STMicroelectronics, Vishay, and Synaptics. The optical and networking hardware around them — Lumentum and Viavi. The software chips are designed with — Synopsys. And the distributor that moves the parts from fab to board — Arrow Electronics. End to end, the list is the semiconductor economy.
Which is worth saying plainly, because it changes how you’d size these. Take five of them and you don’t have a diversified watchlist — you have one macro position on chips wearing five tickers. The three names that sit outside the complex — Space Exploration Technologies, Mattel, and Sweetgreen — are the only real diversifiers, one each from aerospace, leisure, and restaurants.
One thing ties the whole table together, chip names and outsiders alike: every one has already broken out of its primary pattern. All ten. These aren’t anticipation setups waiting for the pattern to fire — the pattern’s already through. What we’re watching now is whether buyers defend each breakout with a clean daily close above the secondary trigger listed alongside the ticker.
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 | Lumentum Holdings Inc. | Nasdaq: LITE | $1,085.42 | $1,092.00 | Symmetrical Triangle Pattern Breakout |
| 2 | Arrow Electronics, Inc. | NYSE: ARW | $242.01 | $247.00 | Ascending Triangle Pattern Breakout |
| 3 | Space Exploration Technologies Corp. | Nasdaq: SPCX | $158.96 | $161.00 | Symmetrical Triangle Pattern Breakout |
| 4 | STMicroelectronics N.V. | NYSE: STM | $57.26 | $59.10 | Falling Wedge Pattern Breakout |
| 5 | Vishay Intertechnology, Inc. | NYSE: VSH | $38.18 | $39.00 | Symmetrical Triangle Pattern Breakout |
| 6 | Mattel, Inc. | Nasdaq: MAT | $15.27 | $15.50 | Downtrend Channel Breakout |
| 7 | Viavi Solutions Inc. | Nasdaq: VIAV | $47.10 | $48.00 | Symmetrical Triangle Pattern Breakout |
| 8 | Synopsys, Inc. | Nasdaq: SNPS | $489.90 | $504.00 | Falling Wedge Pattern Breakout |
| 9 | Sweetgreen, Inc. | NYSE: SG | $9.10 | $9.30 | Symmetrical Triangle Pattern Breakout |
| 10 | Synaptics Incorporated | Nasdaq: SYNA | $121.10 | $123.00 | Downtrend Channel 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 Lumentum Holdings Inc. (Nasdaq: LITE)
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 LITE is if the stock closes above the immediate resistance level of $1,092.00. This is marked in the chart below as a green color dotted line.
Daily chart – LITE
LITE – Symmetrical Triangle Pattern Breakout
#2 Arrow Electronics, Inc. (NYSE: ARW)
Sector: Technology • Electronics & Computer Distribution
Reason: Breakout From 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): Although the stock has broken out of the ascending triangle pattern, the ideal buy level for ARW is if the stock has a daily close above the near-term resistance level of $247.00. This is marked in the chart below as a green color dotted line.
Daily chart – ARW
ARW – Ascending Triangle Pattern Breakout
#3 Space Exploration Technologies Corp. (Nasdaq: SPCX)
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 SPCX is if the stock closes above the immediate resistance level of $161.00. This is marked in the chart below as a green color dotted line.
Daily chart – SPCX
SPCX – Symmetrical Triangle Pattern Breakout
#4 STMicroelectronics N.V. (NYSE: STM)
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 STM is above the nearest resistance level of $59.10. This is marked in the chart below as a green color dotted line.
Daily chart – STM
STM – Falling Wedge Pattern Breakout
#5 Vishay Intertechnology, Inc. (NYSE: VSH)
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 VSH is if the stock closes above the immediate resistance level of $39.00. This is marked in the chart below as a green color dotted line.
Daily chart – VSH
VSH – Symmetrical Triangle Pattern Breakout
#6 Mattel, Inc. (Nasdaq: MAT)
Sector: Consumer Discretionary • Leisure
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 MAT is if the stock has a daily close above $15.50. This is marked in the chart below as a green color dotted line.
Daily chart – MAT
MAT – Downtrend Channel Breakout
#7 Viavi Solutions Inc. (Nasdaq: VIAV)
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 VIAV is if the stock closes above the immediate resistance level of $48.00. This is marked in the chart below as a green color dotted line.
Daily chart – VIAV
VIAV – Symmetrical Triangle Pattern Breakout
#8 Synopsys, Inc. (Nasdaq: SNPS)
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 SNPS is above the nearest resistance level of $504.00. This is marked in the chart below as a green color dotted line.
Daily chart – SNPS
SNPS – Falling Wedge Pattern Breakout
#9 Sweetgreen, Inc. (NYSE: SG)
Sector: Consumer Discretionary • Restaurants
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 SG is if the stock closes above the immediate resistance level of $9.30. This is marked in the chart below as a green color dotted line.
Daily chart – SG
SG – Symmetrical Triangle Pattern Breakout
#10 Synaptics Incorporated (Nasdaq: SYNA)
Sector: Technology • Semiconductors
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 SYNA is if the stock has a daily close above $123.00. This is marked in the chart below as a green color dotted line.
Daily chart – SYNA
SYNA – Downtrend Channel Breakout
Ten names, one dominant theme: the chip complex, top to bottom. The makers (STMicroelectronics, Vishay, Synaptics), the optical and networking hardware (Lumentum, Viavi), the design software (Synopsys), and the distribution layer (Arrow) — seven tickers that are really one bet on semiconductors. The other three — Space Exploration Technologies, Mattel, and Sweetgreen — are the diversifiers.
Every one of the ten has already cleared its primary pattern, so the trade here isn’t about catching the breakout. It’s about confirmation: a clean daily close above the buy level listed alongside each ticker. Not the open. Not the intraday tap. The close. And because so many of these move together, size the chip names as the single position they really are.
We’ll watch the table this week and let the names sort themselves out.
Happy Trading!
Tara and Greg
